A FRAMEWORK FOR THE DEVELOPMENT OF WOMEN ENTREPRENEURSHIP

A FRAMEWORK FOR THE DEVELOPMENT OF WOMEN ENTREPRENEURSHIP IN THE EKURHULENI DISTRICT

AKOCK

Mini-dissertation submitted in partial fulfilment of the requirements for the degree Master in Business Administration at the North-West University Potchefstroom

Campus

Supervisor Dr SP van der Merwe

December 2008 Potchefstroom

1

ABSTRACT

With nearly half of its population living in conditions of extreme poverty caused by

high unemployment rate the economic realities of South Africa are harsh And yet

the promise of sustainable development remains bright By creating economic

growth South African entrepreneurs are proving to be at the heart of that promise

and a key weapon in the fight against poverty (Mboweni 20001)

Small and medium enterprises (SMEs) and entrepreneurship form therefore

important parts of any national economy Governments have increasingly recognised

the importance of SMEs and entrepreneurship development It is now widely

recognised that a facilitative or enabling support programmes and the appropriate

regulatory environment is crucial to the development of small and medium

enterprises However programmes aimed at supporting SME and entrepreneurship

development tend to be gender neutral Womens economic potential may thus

remain under-utilised with attendant macro-economic consequences

Although limited research was focused on this topic in South Africa international

research has shown that women face a number of difficulties in establishing and

maintaining businesses Although most of these difficulties are common to both

genders in many cases they tend to be more significant for female entrepreneurs

(Edwards 2001 45) This is due to factors such as gender discrimination and

stereotypes differences in the way women and men approach entrepreneurship

difficulties in reconciling business and family obligations the choice of business types

and sectors information gaps lack of contacts and access to networking

Women entrepreneurship is still in its infancy in South Africa and only recently did the government start to focus on this dynamic field of high importance The Department of Trade and Industry (dti) has over the last few years tried to undertake a range of initiatives to promote and support the economic empowerment of women

I

Ekurhuleni has to be one of the best areas for doing business in Africa Its

infrastructure facilities location and business climate all help make Ekurhuleni

attractive to any business proposition and international investors but with this come

the reality of an amends competitive environment therefore creating an environment

with tremendous challenges for the entrepreneur

The objective of this study was the compiling of a framework for the development of

women entrepreneurship in the Ekurhuleni district A survey of 80 women

entrepreneurs was conducted A detailed description of the female entrepreneur in

Ekurhuleni was compiled from empirical research The biographical information of the

female entrepreneur was discussed followed by the structure of female owned

businesses within Ekurhuleni The path to ownership was explored as well as the

views of the entrepreneurs in regards to the support offered by Ekurhuleni the

motivational factors to enter self-employment obstacles faced during the start-up

phase obstacles that are currently experienced in daily operations and the support

needs of the female entrepreneur

Constraints faced by women entrepreneurs in Ekurhuleni district are complex and

calls for a parallel range of services to address them Broadly there are three kinds of

services which will be effective in supporting these entrepreneurs and as a result

addressing the various barriers faced by them ie promotion strategy and support

In the light of above and the research results a development framework was

compiled to specifically address the needs of women entrepreneurship in Ekurhuleni

11

ACKNOWLEDGEMENTS

I would like to express my gratitude to everyone who made it possible to complete this

dissertation First I extend great thanks to Professor Stephan van der Merwe my

dissertation advisor for his patients and considerable mentoring His advice and support

were essential to the successful completion of this research

Secondly thanks to all the women entrepreneurs that made time in their busy schedules

to participate in this study Your effort is greatly appreciated

Lastly and most importantly I would like to extend my heartfelt gratitude to my family and

friends for their love and support through the hard times and above all teaching me to

expect only the best from myself

111

TABLE OF CONTENTS

ABSTRACT j

ACKNOWLEDGEMENTS jjj

TABLE OF CONTENTS jv

LIST OF FIGURES viii

LIST OF TABLES ix

CHAPTER 1 NATURE AND SCOPE OF THE STUDY 1

11 INTRODUCTION 1

12 PROBLEM STATEMENT 4

13 OBJECTIVES OF THE STUDY 6

131 Primary Objective 6

132 Secondary objectives 6

14 SCOPE OF THE STUDY 7

141 Field of Study 7

142 Geographical 7

15 RESEARCH METHODOLOGY 8

151 Literature review 8

152 Empirical research 9

1521 Research design 10

1522 Sampling frame 11

1523 Sampling method 11

1524 Questionnaire design 12

1525 Verification of questionnaire 14

1526 Distribution of questionnaires 15

1527 Data analysis 15

16 LIMITATIONS TO THE STUDY 15

17 LAYOUT OF THE STUDY 16

IV

CHAPTER 2 BACKGROUND INFORMATION ON THE SOUTH AFRICAN 19

ENVIRONMENT

21 INTRODUCTION 19

22 BACKGROUND TO THE SOUTH AFRICAN BUSINESS ENVIRONMENT 20

121 South African employment 20

222 South African economy trajectory 22

223 Reasons for unemployment 24

23 ENTERPRISE DEVELOPMENT IN SOUTH AFRICA 27

231 Global perspective of South African entrepreneurship 27

232 Micro and small-scale enterprise (SMME) 29

233 Government strategy 31

24 ECONOMIC IMPACT OF EKURHULENI 38

241 Ekurhuleni demographic 38

242 Ekurhuleni economics 40

243 Ekurhuleni infrastructure 41

25 SUMMARY 46

CHAPTER 3 LITERATURE REVIEW ON WOMEN ENTREPRENEURSHIP 47

31 INTRODUCTION 47

32 ENTREPRENEURSHIP AS AN AREA OF STUDY 47

33 GENDER ENTREPRENEURSHIP 50

331 Motivation 52

332 Opportunity identification 54

333 Type of business started 55

334 Venture size 56

335 Unique challenges facing women entrepreneurs 56

336 Growth strategies 59

34 WOMEN ENTREPRENEURSHIP DEVELOPMENT AND SUPPORT 60

35 SUMMARY 65

CHAPTER 4 RESULTS AND DISCUSSION OF THE EMPIRICAL STUDY 67

41 INTRODUCTION 67

42 GATHERING OF DATA 67

421 Development and construction of questionnaire 67

v

422 Data collection 69

43 BIOGRAPHICAL INFORMATION OF THE RESPONDENTS 71

431 Age group description of respondents 71

432 Marital status of respondents 72

433 Highest academic qualification of respondents 73

434 Number of children 74

435 Age group description of children 75

44 STRUCTURE OF PARTICIPATING WOMEN-OWNED BUSINESSES 77

441 Number of permanent employees 77

442 Turnover of business 78

443 Economic sector of operation 79

444 Legal status of business 81

445 Business premises 82

446 Age of business 83

45 PATH TO OWNERSHIP 84

451 Path to business ownership 84

452 Previous employment experience 85

453 Years self employed 86

454 Source of start-up funding 87

455 Role models 88

456 First ownership 89

46 WOMEN ENTREPRENEURSHIP MOTIVATIONAL FACTORS 90

461 Women entrepreneurship motivational factors 90

462 Ekurhuleni support 93

463 Obstacles to business start-up 94

464 Obstacles currently faced in business 96

47 SUPPORT NEEDS OF RESPONDENTS 98 48 SUMMARY 99

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 101

51 INTRODUCTION 101

52 CONCLUSIONS ON THE EMPIRICAL STUDY 101

521 Biographical information results 102

522 Structure of participating women-owned businesses results 102

VI

523 Path to ownership results 102

524 Motivational factors to self employment result 102

525 Support services offered by Ekurhuleni 103

526 Obstacles to business start-up results 103

527 Obstacles experience in current business operations results 103

528 Support need results 104

53 CRITICAL EVALUATION OF THE STUDY 113

55 SUGGESTIONS FOR FUTURE RESEARCH 114

56 SUMMARY 115

BIBLIOGRAPHY 117

APPENDIX A - W O M E N ENTREPRENEURSHIP QUESTIONNAIRE 131

vu

LIST OF FIGURES

Figure 11 Ekurhuleni metropolitan

Figure 12 A schematic representation of the research process

Figure 21 Map of Ekurhuleni (former east Rand) region

Figure 22 Estimate land coverage in Ekurhuleni for 2007I

Figure 31 Framework for the support of women entrepreneurship activity

Figure 51 A framework for the development of women entrepreneurship in

Ekurhuleni

LIST OF TABLES

Table 11 Relative entrepreneurial rankings 2001 to 2006 3

Table 21 Key labour market indicators 21

Table 22 South African projectory indicators 28

Table 23 Classification of SMME in South Africa 32

Table 24 Small business support institutions 34

Table 25 Women entrepreneurship associations and networks 37

Table 26 Ekurhuleni key comparative statistics 39

Table 31 Main contributors to entrepreneurship theory 49

Table 32 Identification of gender differences in entrepreneurship 51

Table 41 Age group description of respondents 71

Table 42 Marital status of respondents 72

Table 43 Highest academic qualification of respondents 73

Table 44 Number of children of respondents 75

Table 45 Age group description of children 76

Table 46 Number of permanent employees 77

Table 47 Annual turnover of the business 79

Table 48 Economic sector of operation 80

Table 49 Legal status of business 81

Table 410 Business premises 82

Table 411 Age of business 83

Table 412 Path to business ownership 84

Table 413 Previous employment experience 85

Table 414 Years self employed 87

Table 415 Source of start-up funding 88

Table 416 Role models 89

Table 417 First ownership 90

Table 418 women entrepreneurship motivation factors 91

Table 419 Women entrepreneurs feelings towards Ekurhuleni and the support

this district is providing to their business operations 93

Table 420 Obstacles to business start-up 95

Table 421 Obstacles currently faced in business 97

IX

Table 422 Support needs of respondents 98

x

CHAPTER 1 NATURE AND SCOPE OF THE STUDY

11 INTRODUCTION

In the year 2000 the largest gathering of world leaders in human history signed an agreement committing to achieve measurable improvements in the most critical areas of human development This agreement came to be called the Millennium Development Goals and it contained an important commitment to halve poverty by the year 2015 Now eight years after the Millennium Summit we better understand three important facts (United Nations 2008 1)

bull Poverty alleviation goals will not be achieved without sustainable economic growth in the developing world

bull This economic growth will rely in large part on the success of the private sector

bull Private sector development must touch all segments of the economy including the micro enterprise and SME sectors

The hypothesis that entrepreneurship is linked to economic growth finds Its most immediate foundation in simple intuition common sense and pure economic observation activities to convert ideas into economic opportunities lie at the very heart of entrepreneurship Entrepreneurship is a source of innovation and change and as such spurs improvements in productivity and economic competitiveness

With nearly half of its population living in conditions of extreme poverty caused by high unemployment rate the economic realities of South Africa are harsh And yet the promise of sustainable development remains bright By creating economic growth South African entrepreneurs are proving to be at the heart of that promise and a key weapon in the fight against poverty (Mboweni 2000 1)

1

No economically successful country can operate using less than half of its business

resources According to the latest labour force survey and mid year population estimates

released by Statistics South Africa women in South Africa currently make up 518

percent of South Africas adult population 439 percent of the workforce 566 percent of

the unemployed and 525 percent of the working age population (Statistics South Africa

2008 3) But unfortunately their contribution has not been adequately nurtured





(Edwards 2001 45) This is due to factors such as

bull Gender discrimination and stereotypes

bull Differences in the way women and men approach entrepreneurship

bull Difficulties in reconciling business and family obligations

bull The choice of business types and sectors

bull Information gaps

bull Lack of contacts and access to networking

Women entrepreneurship is still in its infancy in South Africa and only recently did the

government start to focus on this dynamic field of high importance The Department of

Trade and Industry (dti) has over the last few years tried to undertake a range of

initiatives to promote and support the economic empowerment of women These include

the holding of a number of conferences the establishment of the South African

Womens Empowerment Network and commissioning of studies looking at the internal

operations and external impact of both the Department of Trade and Industry and its

associated institutions from a gender perspective (Department of Trade and Industry

2008 1) Unfortunately these government activities did not shed or lighten any problems

that woman entrepreneurs are still facing today as South Africa is still not placed

favourable against other international countries in regards to entrepreneurship as

2

indicated by the 2006 Global Entrepreneurship Monitor (GEM) report (Maas amp

Herrington 2006 24)

The GEM is a research programme launched in 1999 that provides annual assessments

of the national level of entrepreneurship GEM analyses are based on a harmonised

assessment of the level of national entrepreneurial activity for the participating countries

and represent one of the rare sources of data on entrepreneurship conducive to crossshy

country comparison The GEM measures national entrepreneurial activity as the share

of people among a countrys labour force who are either actively involved in starting a

new venture andor manage a business less than 42 months old According to the GEM

report 2006 (Maas amp Herrington 2006 24) South Africa is placed 30th out of 42

participant countries as indicated in table 11 The table furthermore indicate that South

Africas position on the global ranking continues to deteriorate relative to other

participating countries This is despite improved macro-economic conditions in the

country

Table 11 Relative entrepreneurial rankings 2001 to 2006

South Africas TEA ranking

2001 14m out of 28 countries


2003 22nd out of 31 countries


2005 25th out of 34 countries


Source Maas amp Herrington (200624)

Currently the global average for female entrepreneurship is standing at seven point

seven percent of the population South African women are however currently

performing at just four point eight percent (Maas amp Herrington 2006 24) Almost three

percent lower than the global average indicating that considerable scope exists to

improve the number of women entrepreneurs in the economy and the level at which they

operate

3

Therefore a great need for a conceptual framework in the context of women entrepreneurship development must be look into This kind of framework will contribute to an unlimited advantage and sustainable growth for the South African economy

The South African National Small Business Act (1996) and National Small Business Amendment Bill (292004 2) classify micro very small small and medium-sized businesses as businesses that employ less than 200 full-time equivalent of paid employees

The focus of this study was thus small and medium-sized women owned businesses as

define above

12 PROBLEM STATEMENT

Research on women entrepreneurship remains limited in the South African context and

this has a direct influence on the formulation and implementation of policies and support

programmes that could be one of the main causes of South Africas current poor

performance in regards to female entrepreneurship activity

But in order to develop appropriate interventions to promote women entrepreneurs in

South Africa and therefore create a sustaining and entrepreneurial environment in the

country it is necessary first to understand more about them

This study will focus on enhancing the understanding of the profile of the woman entrepreneur through examining the contextual social psychological and economic factors that influence and shape the woman entrepreneur in a complex dynamic environment

Womens entrepreneurship needs to be studied separately for four main reasons

(Organisation for Economic Co-operation and Development 2004 5)

4

Firstly because womens entrepreneurs has been recognised during the last decade as

an important untapped source of economic growth Women creating unique solutions to

management business problems and exploitation of entrepreneurial opportunities

necessities this field of study As a result women represent a readily available pool of

potential entrepreneurial activity that countries may leverage to improve their economies


Secondly although without a doubt the economic impact of women is significant little

substantial research was done on this field Leaving unventured ground for further

research The topic of women in entrepreneurship has been largely neglected both in

society in general and in the social sciences (Organisation for economic co-operation

and development 2004 5)

Thirdly according to the Organisation for Economic Co-operation and Development

(2004 5) not only do women participate less in entrepreneurship than men but will also

participate in entrepreneurial activities in other industries than those of their male

counterparts The industries (primarily retail education and other service industries)

chosen by women are often perceived as being less important to economic development

and growth than high-technology and manufacturing

It is thus clear that scientific research on women entrepreneurship is important to gain

knowledge on the uniqueness of women entrepreneurs in order to make

recommendations

Lastly current support policies and programmes do not take into consideration the

unique needs of woman entrepreneurs sketching an unequal playing field and resulting

in a bias towards male entrepreneurs

From the worlds largest producer of gold a century ago the geographical area known

as the Ekurhuleni has become an entity of note in a globally competitive business and

industry Leaving ambient source of entrepreneurial opportunities not currently utilised to

5

full potential The study will therefore also aim to lessen this gap in the development of

women entrepreneurs in this dynamic district by developing a contextual framework to

enhance women entrepreneurship specifically in Ekurhuleni

13 OBJECTIVES OF THE STUDY

This study is based on both a primary objective and secondary objectives

131 Primary objective

The primary objective of the study was to develop a contextual strategic framework to enhance women entrepreneurship in Ekurhuleni

132 Secondary objectives

In order to achieve the primary objective the following secondary objectives were formulated

bull To gain insight into the role women entrepreneurs can play in the South African

economy by means of a literature study

bull To study the unique elements that Ekurhuleni can offer the female entrepreneur

bull To identify challenges that female entrepreneurs may face entering and growing own

business ventures

bull To examine current development programmes in a South African context

bull To suggest practical recommendations to develop women entrepreneurship in the

Ekurhuleni district

6

14 SCOPE OF THE STUDY

141 Field of the study

This study focused on the major discipline of entrepreneurship with the specific emphasis on women entrepreneurship

142 Geographical

Ekurhuleni comprised of nine towns of the former East Rand namely Greater Alberton Benoni Germiston Springs Kempton Park Edenvale Nigel Brakpan and Boksburg Refer to figure 11 for a map of the region

Figure 11 Ekurhuleni Metropolitan Municipality

Source Dining-out South African restaurants (2008)

7

Ekurhuleni is a vibrant cosmopolitan and culturally diverse region with over 25 million residents The area has around 8 000 industries and is responsible for about 23 percent of the gross geographical product of Gauteng province which is sub-Saharan Africas most economically powerful and active region

Ekurhuleni is a Tsonga word and can loosely be translated as the place of peace It denotes a place with plentiful opportunities for any enthusiastic entrepreneur but not to the avail of some unique challenges forfeiting by this diverse region

This study therefore determined what unique challenges specifically woman

entrepreneurs are facing while venturing into this dynamic environment

15 RESEARCH METHODOLOGY

151 Literature study

A study of the literature involves tracing identifying and analysing documents containing information relating to the research problem (Struwig amp Stead 2001 38)The main aim of the literature study was first of all is to gain a body of knowledge regarding woman entrepreneurship and geographical aspects where after this knowledge was formulated into a comprehensive understanding of current elements associated to women entrepreneurs This understanding was utilised in the design of the questionnaire for the empirical study

Other advantages to the literature study (Struwig amp Stead 2001 39)

bull The literature study can provide a perspective on the study

bull The literature study can highlight previous investigations pertinent to the research

topic and indicate how other researchers have dealt with similar research problems

in similar situations

bull It can reveal unfamiliar sources of information

8

bull Can stimulate new ideas and approaches

bull It can provide a framework for the evaluation and assessment of future work

Various sources of secondary data including the following was studied and applied to

this study

bull Scientific journals

bull Text books

bull Reports from the Department of Trade and Industry (dti) of South Africa

bull Other dissertations and thesis on entrepreneurship

bull Statistical reports from Statistics South Africa

bull Environmental reports

Sources accessed and retrieved were used to write the literature review covering two

chapters The aim with chapter two was to provide background information to the study

in regards to information on the South African business environment enterprise

development in South Africa and the economic impact of the Ekurhuleni district on the

South African economy

Chapter three forms the body of the literature review and contains information on

entrepreneurship as an area of study gender entrepreneurship women

entrepreneurship development and support

152 Empirical study

Empirical research activities contribute to casual understanding by investigating

relationships between scores obtained from cases on measure of concepts (Schwab

1999 3)

9

Three activities are needed to conduct empirical research

bull Measurement Measurement activities are aimed at obtaining scores on

measurement that correspond to the concepts studied

bull Research design Research design establishes procedures to obtain participants

and to determine how scores are obtained on measures

bull Analyses Analysis are performed to describe scores on single measures and

especlaWy to identify relationships that may exist between scores across different

measures

1521 Research design

The data on female-owned businesses are limited and the need for further research on female entrepreneurs has been identified as long ago as the early 1980s Most international studies on female entrepreneurs suffered from limitations that preluded their generalisation (ONeill amp Viljoen 200137)

Due to the incompleteness of current literature available on the subject of women entrepreneurship quantitative methods was utilised in combination with current available literature to formulate questions established during the study A hypothesis was therefore not formulated due to the exploratory nature of this study

As a component to the explorative nature of the study a survey of female entrepreneurs in Ekurhuleni was conducted Survey research can be described as the gathering and scrutiny of responses from samples of people to polls and questionnaires that are designed to draw out their opinions attitudes and sentiments on a particular subject (Wrong 2007 1)

The survey instrument utilised in the study was a standardised questionnaire This questionnaire was administered either as interview schedule in face to face interviewing or was handed to participants to complete by themselves

10

For the purpose of the study the unit of analysis was the individual

The general mode of analysis used in this research is the one referred to as explanation building Explanation building points out that to explain a phenomenon is to stipulate a set of causal links about it In the context of approaches such as these sets of causal links are typically seen as being among the basic elements of a theoretical framework (Campbell 2004 22)

1522 Sampling frame

The sampling frame can be defined as the list of ultimate sampling entities and must be representative of the population and this is a question outside the scope of statistical theory demanding the judgment of experts in the particular subject matter being studied (Bartlett Kotrlik amp Higgins 2001 44)

The sampling frame identified for this study included all women entrepreneurs that owned small and medium-size businesses in Ekurhuleni This could include women entrepreneurs in the start-up phase of their respective business as well as established businesses owned by women

1523 Sampling method

The unavailability of a women owned business database in Ekurhuleni prompted this

review to make use of a hybrid mix of two types of sampling methods for this study

Firstly a convenience sampling method was chosen due to the accessibility and articulation of the sampling frame as well as the sufficiently homogeneous (similar) universe

Secondly Snowball sampling is a special non-probability method used when the desired

sample characteristic is rare While this technique can dramatically lower search costs it

11

comes at the expense of introducing bias because the technique itself reduces the

likelihood that the sample will represent a good cross section from the population

1524 Questionnaire design

The realm of survey research includes concepts and strategies that enable the researcher to accumulate data concerning the attitudes opinions and knowledge of a population or sample

One of the most potent survey research tools is the questionnaire which can be administered directly by telephone through the mail or used as structure in a face to face interview Because a questionnaire allows a researcher to gather data conveniently from large samples it is a useful tool to collect and analyse data from groups that may be affected by changes in professional practice or education

Unfortunately many questionnaires contain major flaws that render them incomprehensible to respondents or do not collect the intended data If a questionnaire is incomprehensible to the recipient it is unlikely to be returned a questionnaire that does not gather valid information does not allow the researcher to address the research problem being studied

A researchers attention to several fundamental principles for developing a questionnaire

greatly enhances the likelihood that valid and reliable data will be gathered

Generally the term validity refers to the ability of an instrument to measure actually what the researcher intends to measure Reliability refers to the consistency of a questionnaire in gathering data Optimally each time an individual responds to an item he or she should choose the same response Thus carefully developed questionnaires tend to gather data that accurately represent the knowledge attitudes or opinions of the respondents and address the researchers research problem

12

As a tool to collect data the questionnaire has advantages and limitations that must be taken into account

The main advantages of using a questionnaire are the following

bull Data are gathered economically because the cost for each completed response is low

bull Distributional flexibility is provided because the questionnaire can be sent almost anywhere

bull Data can be gathered from a large number of subjects

bull The data gathered can be standardised especially if an item requires a response from a group of choices provided by the researcher

bull The process is time efficient because it generally involves less of the researchers time to gather data in comparison with an equivalent number of interviews

The main limitations of a questionnaire are the following

bull The subjects motivation while completing a questionnaire is unknown

bull Data cannot be gathered from subjects who are illiterate

bull The researcher must assume all subjects have sufficient knowledge to complete the

questionnaire

bull The researcher must assume that all subjects are willing to answer all questions

bull All subjects who receive questionnaires may not complete and return them

bull Questionnaires do not allow follow-up questions such as an interviewer may pose to

clarify a given response

bull Although each subject receives the same items in a questionnaire test conditions

cannot be standardised

bull Subjects may not interpret items contained in a questionnaire in the same manner

Perceptions of what an item asks may differ

13

After carefully reviewing the advantages and limitations of using a questionnaire for a

particular study a researcher must decide if the advantages outweigh the limitations

Keeping the above advantages and disadvantages in mind this review followed the

below nine step plan in the questionnaire design process

bull Step one (1) Identify the problem to be studied

bull Step two (2) Translate the problem into a testable form

bull Step three (3) Determine what data must be collected and analysed

bull Step four (4) Identify sources where data can be obtained

bull Step five (5) Describe how data will be gathered

bull Step six (6) Decide on input method

bull Step seven (7) Construct questionnaire in an understandable format

bull Step eight (8) Verification of questionnaire

bull Step nine (9) Distribution

The questionnaire design was two folded This review made use of selection based

questions where more than one answer could be marked Another method employed

was the use of a seven point Likert scale

In the arena of social sciences Likert scale is a popular instrument to measure

constructs such as attitudes images and opinions To facilitate data analysis each

response category on the scale is generally assigned successively an integer value The

questionnaire requests respondents to specify their level of agreement to each of a list

of statements

1525 Verification of questionnaires

The questionnaire was pretested by fellow students at the Potchefstroom Business

School to test the accuracy precision and statistical usefulness of the questionnaire

prior to study

14

After the completion of the pretest a pilot phase was conducted by selecting women

entrepreneurs from a target population and simulates the procedures and protocol that will take place during the actual study The questionnaire was adapted accordance to any problems accounted during the verification process

1526 Distribution of questionnaires

Various options for questionnaire distribution are available to researches Questionnaire can be distributed either by post e-mail fax or directly delivered to participants This review made use of e-mail and direct delivery as to reduce the time frame for returns

1527 Data analysis

Descriptive statistics was used to obtain baseline data Data from questionnaires was coded The data collected were statistically analysed using Statistica (Statsoft 2008) Advanced statistical procedures were utilised to investigate and transform data to useful outputs such as frequency tables These frequency tables were used to make conclusions and provide recommendations to the development of the women entrepreneurs in Ekurhuleni

16 LIMITATIONS OF THE STUDY

This review has identified the following limitations of the study

bull The primary limitations of the study were possible threats to internal validity through (1) size of the sample (2) lack of randomisation The findings of this research can thus not be generalised to all women-owned enterprises in Ekurhuleni South Africa or the world

bull Academic articles on women business owners are still rare and mainstream entrepreneurship journals pay little attention to gender issues The discrepancy

15

between achievements in business ownership and lack of attention to them poses a

paradox

17 LAYOUT OF THE STUDY

The figure below depicts a simplified process through which this research will

predicatively flow It began with a choice of a broad research area progressed through

the formulation of a well defined and delimited research problem and the development of

an appropriate methodology This step will follow with the research proposal

Note the two headed arrows between each stage of the process indicating the cyclical nature of research planning After each step is completed it might be necessary to alter or rework previous steps to supply structure to the study

The research study is divided into six chapters

Chapter 1 Nature and scope of the study

Chapter 1 serves to orientate the reader to a paradigm perspective to the study This

chapter includes aspects such as the problem statement objectives of the study scope

of the study research methodology limitations of the study and the layout of the study

Chapter 2 and 3 Literature review

These chapters forms part of the literature review from which the research problem was

developed

The aim with chapter two is to provide background information to the study in regards to information on the South African business environment enterprise development in South Africa and the economic impact of the Ekurhuleni district on the South African economy

16


IDEA OR BROAD TOPIC AREA x WELL DEFINED AND DELIMITED RESEARCH PROBLEM

RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V

B^^^^Ji^^lWETATIIOfCsectlaquot^5)

Source Botha (2006)




17

Chapter 4 Results and discussion of empirical research

In chapter four a full exposition of the research design and analysis is offered This

empirical research chapter contains the following topics questionnaire design study

population gathering of data presentation of results and discussion of findings

The main purpose of the empirical research chapter is to display the findings in a clear and accessible manner The researcher made use of tables to illustrate the findings

Chapters Conclusions and recommendations

The body of information in this chapter portrays the following topics the conclusion recommendations achievement of the objectives and suggestions for further research

18

CHAPTER 2 BACKGROUND INFORMATION ON THE SOUTH AFRICAN

BUSINESS ENVIRONMENT

21 INTRODUCTION

According to Zahra Ireland Gutierrez and Hitt (2000 518) much has been discussed and written about the need for entrepreneurial development as an important force for economic development The reality is however that entrepreneurship as a possible economic activity is still not well recognised and poorly supported (Hitt Dacin Levitas Arregle amp Borza 2000 453)

Revivo-Steiner (2006 1) indicates that research findings have shown a high positive correlation between the level of national womens entrepreneurial activity and growth in Gross Domestic Product (GDP) suggesting that countries that are successful in promoting entrepreneurship among women could experience a positive impact on economic growth rates A refreshing new approach to entrepreneurship by women emphasises relative advantages of women and how they can be leveraged into entrepreneurship Entrepreneurship is a dynamic field particularly as it relates to the experience of women entrepreneurs (Kouriloff 2000 60)

Bhorat and Cassim (2004 10) are of the opinion that in common with other developed economies the number of women starting up new businesses in South Africa far exceeds the number of men Since the 1970s more women especially married women have become involved in the full-time workforce With the overall growth in the number of women in full-time work there has been a commensurate increase in the number of women starting their own businesses and hence an increase in the number of potential women entrepreneurs (Department of Trade and Industry (dti) 2001 2) The purpose of this literature study is to embed a research setting as to emphasise the need for the current study

19

22 BACKGROUND TO THE SOUTH AFRICAN BUSINESS ENVIRONMENT

Since the advent of democracy in 1994 South Africas economy has been undergoing

tremendous structural transformation The 2008 Organisation for Economic Coshy

operation and Development (OECD) economic survey focused entirely on this economic

metamorphosis and a number of broad factor changes have been isolated in the report

The OECD (2008 2) is of the opinion that before 1994 the economy was wracked by

long years of internal conflict and external sanctions Post 1994 brought forward an era

of considerable government populism in an effort to boost short term growth According

to the OECD (2008 2) this has resulted in public finances being stabilised inflation was

brought down foreign capital was attracted in growing amounts and economic growth

improved greatly

221 South African employment

Despite this macroeconomic prudence which has fostered fiscal and external

sustainability the OECD (2008 3) is of the opinion that some very serious weaknesses

in the economic record to date persist especially as regards to unemployment

inequality and poverty

Levels of poverty and unemployment in South Africa are critically high despite the

countrys status as an upper middle income country According to Mohr and Fourie

(2000 121) unemployment is arguably the most important and vexing problem facing

the South African economy and its governance The problem is that the economy is

currently unable to absorb productively all the current labour force or all the increment to

the labour force The public and private sectors have also been shedding labour in

response to economic imperatives of the domestic and global circumstances (Koller

2006 6) Accordingly more and more people are taking the route to informal sector

entrepreneurship (Mahadea 2008 5) As unemployment causes the unemployed to

20

suffer mental and physical hardship it poses a serious threat to social and political

stability (Mohr amp Fourie 2000 121)

In its starkest terms the issue of unemployment is depicted in Table 21 The latest

Quarterly Labour Force Survey (QLFS) conducted by Statistics South Africa released

in August 2008 measured the unemployment rate at 231 percent Out of a population of

30 705 000 (15-64 years) the labour force was measured at 17 844 000 Employment

stood at 13 729 000 and not economically active participants at 12 861 000 (Statistics

South Africa (QLFS) 2008 3)

Table 21 Key labour market indicators

April - June 2008

Thousands

Population 15-64 years 30 705

Labour force 17 844

Employed 13 729

Formal sector (Non-agriculture) 9415

Informal sector (Non-agriculture) 2340

Agriculture 790

Private households 1185

Unemployed 4114

Not economically active 12861

Discouraged work-seekers 1079

Other (not economically active) 11783

Rate () Unemployment rate 231

Employedpopulation ratio (Absorption) 447

Labour force participation rate 581

Source Statistic South Africa (2008 7)

21

Unemployment in South Africa was not always so high At the time of democratic

transition in 1994 unemployment was substantially lower than it is today (Banerjee

Galiani Levinsohn McLaren amp Woolard 2007 3) Banerjee et al (2007 3) state that

unemployment was fairly low through the 1970s although data limitations prelude

certainty They also indicated that during a nationally representative survey conducted

just before the 1994 transition the unemployment was measured at 13 percent By the

end of the decade unemployment jumped to 30 percent before starting to decline

slightly

Frey (2006 1) are of the opinion that taking in consideration that it is a middle-income

developing country two aspects of South Africas employment trends are striking

bull The first relates to the small and declining proportion of public sector employment

Public sector employment has shrunk as a result of governments restrictive fiscal

stance as well as its desire to improve efficiency in the public service In terms of its

fiscal stance the South African government has sought to release funds from current

to capital expenditure Moving away from a very substantial personnel budget

towards greater investment in infrastructure

bull The second unusual feature is the small proportion of non-formal employment The

non-formal economy does appear to have grown quite substantially since the mid-

1990s but has stagnated since 2000 and that the dynamics underpinning the growth

of the non-formal economy are poorly understood

222 South African economy trajectory

It is important to begin by outlying the character of South Africas economic development

trajectory during the past 50 years as this provides the context within which the demand

for labour and its skill composition is determined This trajectory analysis should

however be approach with caution due to several factors

22

bull Labour market data in South Africa is cause of some concern Data collected during

Apartheid and in the early post-apartheid period are problematic for various reasons

such as differing sampling non-coverage of former homelands1 in some surveys and

small samples (Kingdon amp Knight 2005 2)

bull Kingdon and Knight (2005 2) explains further that the comparability of the data over

time is undermined both by changing questions between the various surveys

particularly as between the October Household Surveys (OHS) and Labour Force

Survey (LFS) and according to Casale and Posel (2002 170) by changes in the

way employment and unemployment are derived from the questions in the different

surveys

bull Another controversy in regards to unemployment data that are also needed to be

mentioned are the fact that because population estimates change at every census a

re-estimation of recent statistics need to be done after each five year revision of the

weights that have cause differences in the data (Chandra amp Nganou 2001 14) The

definition of the informal sector has also changed in 1997 also leading to differences

in data making comparability difficult (Devey Skinner amp Valodia 2002 5)

bull Lastly labour market data display some inexplicable large fluctuations For instance

employment figures rise sharply (by 104 percent) in a single year between 1998 and

1999 employment in subsistence agriculture rose and dipped over 1999- 2001 and

there are large fluctuations from year to year in the numbers employed in the

informal sector on a comparable definition between 1997 and 2002 (Bhorat 2002 5)

It is thus hazardous to make categorical statements about labour market changes over

time in South Africa This hazard is somewhat reduced if one takes a longer term view

than to look at year-on-year changes Nevertheless the purpose of this review is

intended not to be seen as an accurate reflection of specific labour market numbers but

rather as a description of broad labour market trends (Kingdon amp Knight 2005 2)

23

223 Reasons for unemployment

In the case of the South African economy voluminous research was conducted in regard to the reasons for the high unemployment currently straining the country (Lewis 2002 733 Edwards 2001 48 Bhorat amp Hodge 1999 362 Devey etai 2002 6 Mayer amp Altman 2005 45) Therefore this review will attempt to briefly touch on certain elements of this research by looking into the trajectory development of the South African economy

Mayer and Altman (2005 45) are of the opinion that the primary cause of unemployment in South Africa is the capital-intensity that historically characterized the minerals economy and globalisation more recently Altman (2001 314) states that resource extraction has been the central driver of South Africas economic development Ostensson and Uwizeye-Mapendano (2000 4) argue that as a minerals economy South Africas industrial development has been driven by all the attendant complications associated with a resource curse

In general minerals economies tend to grow and experience structural shifts more slowly than non-minerals exporters (Mayer amp Altman 2005 34) These economies also tend to have a more capital-intensive structure of production This is explained by a number of characteristics that are common to these economies

Edwards (2001 45) are of the opinion that most developing countries go through a phase of low-wage low-productivity manufacturing development that has the impact of mopping up the labour surplus The pattern of development experienced by labour surplus developing economies usually follows a familiar path where underproductive labour moves off the farms and into labour-intensive manufacturing traded sectors (Lewis 2002 731) As there is a labour surplus wages are low and the sectors can therefore be highly competitive internationally Lewis (2002 731) goes further by explaining that only once there is a tighter labour market do wages begin to rise and the economy moves into the development of more capital and skill intensive industries and

24

the emphasis on labour-intensive traded sectors is a necessary step in an economy that

is capital and foreign exchange constrained

Altman (2001 314) is of the opinion that the more successful newly industrialised countries are those that simultaneously invested in human capital development so that the skills base developed alongside these structural shifts

In contrast minerals economies such as South Africa tend to leapfrog from the resource

base into the development of heavy and chemicals industries bypassing the

development stage of labour intensive manufacturing and this is made possible by the

large surpluses generated from resource extraction (Mayer amp Altman 2005 34)

Devey et al (2006 6) goes further by explaining that consequently the mass creation of jobs in labour intensive traded sectors is less viable in a context of high domestic cost structures Overvalued exchange rates caused by minerals exports earnings render labour intensive agricultural and manufactured exports uncompetitive Job creation is not a requirement of manufacturing development as it is in developing economies that do not have ready access to capital and foreign exchange (Devey et alr 2006 6)

Lewis (2002 733) is therefore of the opinion that the benefits of the minerals economy

do not tend to spread widely and high levels of income inequality and unemployment

result since heavy and chemicals industries are capital intensive and that domestic

demand may not expand as much as in other economies

Altman (2001 314) explains that in accordance with the experience of other minerals economies South Africa bypassed the phase of development where large numbers of workers are absorbed into low-cost low-skill labour-intensive traded goods sectors and that therefore the low growth and high levels of unemployment that characterize the economy today are the consequence of a minerals economy

25

Another reason for the high unemployment according to Klasen and Woolard (1999

300) might be due to Apartheid policies The Apartheid policies persistent legacy serve

to amplify this path dependence and that the apartheid legacy also leaves low rates of

economic participation and significant skills gaps in its wake They further argues that

unemployment continues to rise despite the positive relation between GDP and

employment and that this is explained partly by the relatively slow rate of GDP growth

Another reason might also be the dramatic increase in the number of people seeking

employment in the post-apartheid era This has widened the gap between labour force

entry and the ability of the economy to create jobs

Samson (2000 8) is of the opinion that in light of the relatively large output and

employment multipliers associated with government capital expenditure limited growth

in actual and planned expenditure has dampened potential growth and employment

creation and therefore the inability of the economy to absorb labour at the required

scale

Bhorat and Cassim (2004 15) argue that the jobs losses have been less a result of

import penetration and more related to technology and process adaptation and changing

forms of work organization leading to subcontracting of non-core activities

According to Edwards (2001 65) growing trade has also had the impact of shifting the

economy towards a higher skills composition in the demand for labour In the traded

sectors the demand for lower skill labour has fallen in the context of a very large

oversupply therefore in contrast the demand for higher skill labour has risen in the

context of a severe skills shortage

Banerjee et al (2007 3) concluded in their study that the increase in unemployment

could have been due to structural changes in the economy in the resent years resulting

in a new equilibrium unemployment rate or to negative shocks that had a temporarily

increasing effect on unemployment

26

While South Africas problems are difficult and multi-faceted a combination of sound

macroeconomic policies with structural policies aimed at enhancing entrepreneurship

appear to be most promising to unleash the enormous potential of South-Africas labour

force and address social ambitions within the framework of a strongly growing economy

23 ENTERPRISE DEVELOPMENT IN SOUTH AFRICA

231 Global perspective of South African entrepreneurship

The development of entrepreneurship is the focus of considerable policy interest in

South Africa and many other countries of the world (Walker 2003 113) This is

particularly in recognition of its contribution to economic growth poverty alleviation and

employment

But amidst all this resent attention studies shows that South Africa is still doing poorly in

comparison to other emerging economies in terms of entrepreneurial activity and

development

There are various strands in the empirical literature on entrepreneurship and economic growth using different measures of entrepreneurial activity (United Nations Economic Commission for Europe 2004 4) For instance while one strand of empirical studies measures entrepreneurship in terms of the relative share of economic activity accounted for by small firms other studies use data on self-employment the number of market participants (competition) or firm start-ups as an indicator of entrepreneurial activities (Carree amp Thurik 2002 16)

The GEM measures national entrepreneurial activity as the share of people among a countrys labour force who are either actively involved in starting a new venture andor manage a business less than 42 months old (United nations Economic Commission for Europe 2004 4) The primary measure of entrepreneurship used by GEM is the Total Early-Stage Entrepreneurial Activity (TEA) index The TEA index measures the

27

percentage of individuals between the ages of 18 and 64 years that are involved in starting a new business The TEA index consists of two different phases namely

bull The start-up phase (businesses between 0 and 3 months)

bull New firm businesses (businesses between periods of 3-42 months)

The GEM study does not focus on established businesses (businesses older than 42 months)

In the seven years in which South Africa has participated in this research initiative it has

consistently emerged that it has a low level of early stage entrepreneurial activity nearly

half that of the average of the 40 emerging economy countries which participate

Data from previous GEM studies also indicated that TEA rates for most countries do not

change significantly over time The TEA rates for South African have also not changed

significantly over the years (see Table 22)

Table 22 South African projectory TEA rates

2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50

Source Maas and Herrington (200715)

For the TEA rates to be significantly different from one year to another massive

changes in the macro environment must occur which is clearly not the case in South

Africa (Maas amp Herrington 2007 15)

28

Many researchers have questioned whether South Africa should be concerned about its TEA rates According to Maas and Heirington (2007 15) the following reasons could explain the projectory low TEA rates of South Africa

bull South Africa has a dual-logic economy which might have an influence on the TEA rating On the one side there is a highly developed economic sector and on the other side one struggling for survival

bull Although the TEA rates are lower when compared with the averages of different

categories of countries it can again be influenced by the dual-logic nature of the

economy and that a lower TEA rate is not necessarily a sign that nothing is

happening in a country It can also be a good indication

Any government interested in boosting economic prosperity should be interested in

promoting the entrepreneurial dynamic of its country Adult women represent a readily

available pool of potential entrepreneurs that countries can leverage to improve their

economies (Botha 2006149)

The 2006 GEM report specifically focus on the importance of developing women

entrepreneurship in any country Maas and Herrington (2006 14) indicated in their 2006

report that the global average for female entrepreneurship was standing on 772 of the

population where South African women were however performing at just 483 this is

289 lower than the global average There is therefore considerable scope to improve

the number of women entrepreneurs in the economy and the level at which they

operate

232 Micro and small-scale enterprise (SMME)

In South Africa various new strategies and institutions have been created recently with a view to empower formerly disadvantaged members to enter the mainstream economy as entrepreneurs rather than job seekers In parallel to and as part of this shift there has been the emergence of the micro and small-scale enterprise (SMME) sector as a

29

significant component in economic development and employment (Richardson Howarth

ampFinnegan 2004 16)

SMMEs and entrepreneurship are fast becoming the dominant form of business

ventures in developing economies Especially on the African continent with high

unemployment rates people are turning toward informal and formal small business in

order to sustain their livelihood (De Klerk amp Havenga 2004 1)

According to Niewenhuizen and Kroon (2003 300) the South African smallmicro- and

medium-sized enterprise (SMME) economy has been actively promoted since 1995

Some significant ratios and trends about the dynamics of the small enterprise sector in

South Africa can be seen in the Department of Trade and Industrys review of ten years

of small business support in South Africa report 1994 - 2004 (Department of Trade and

Industry (dti) 2004 4)

bull Combining formal and informal sector activities the small enterprise sector includes

about 95 of all enterprises in South Africa

bull On the basis of the most inclusive categorisation (covering non VAT-registered firms

and those regularly operating in the informal sector) there are currently between 18-

million and 25-million small enterprises in South Africa This number probably

doubled over the past 10 years which is equivalent to a seven percent increase in

numbers per year If we include rural subsistence agricultural activities the size of

this sector can grow by a further 15-million to 25-million even though average

income levels of that segment are very low

bull If we adjust gross domestic product (GDP) values to incorporate informal sector

value-added the small enterprise sector of South Africa contributes about 45 to

50 to the GDP with the share probably rising very slowly The other half is

contributed by large enterprises and the public sector

30

Despite voluminous research however there is still little clarity about the extent to which South Africas SMMEs and entrepreneurship contribute to poverty alleviation economic growth or international competitiveness

Berry Blottnitz Cassim Kesper Rajaratnam and Van Seventer (2002 3) list the following contributions of SMMEs

bull SMMEs are generally more labour-intensive than larger firms and hence have a

higher labour absorption capacity

bull SMMEs as enterprises have some economic roles to fulfil They contribute to the

countrys national product by either manufacturing goods of value or through the

provision of services to both consumers andor other enterprises

bull From an economic perspective enterprises are not just suppliers but also consumers which have an important role to play if they are able to position themselves in a market with purchasing power their demand for industrial or consumer goods will stimulate the activity of their suppliers just as their own activity is stimulated by the demands of their clients Demand in the form of investment plays a dual role both from a demand-side (with regard to the suppliers of industrial goods) and on the supply-side (through the potential for new production arising from upgraded equipment) In addition demand is important to income-generation potential of SMMEs and their ability to stimulate the demand for both consumption and capital goods

232 Government strategy

Unfortunately there is currently little clarity on how SMMEs fit within the industrial policy framework and other objectives of government Some attempts were initiated by government in resent years A strategy was outlined in a White paper by the Department of Trade and Industry in 1995 entitled A National Strategy for the Development of Small Business in South Africa (May 1995) A year later the National Small Business

31

Act was passed by Parliament which provided for the institutions to implement this

strategy (South Africa 1996 377)

The National Small Business Act divides SMMEs into the following categories

Table 23 Classification of SMME in South Africa

Category of SMME

Description

Survivalist enterprises

bull Operates in the informal sector of the economy bull Mainly undertaken by unemployed persons bull Income generated below the poverty line providing minimum means to

keep the unemployed and their families alive bull Little capital invested not much assets bull Not much training bull Opportunities for growing the business very small

Micro enterprises

bull Between one to five employees usually the owner and family

raquo Informal no license formal business premises labour legislation raquo Turnover below the VAT registration level of R300 000 peryear bull Basic business skills and training

bull Potential to make the transition to a viable formal small business

Very small enterprise

raquo Part of the formal economy

Use technology raquo Less than 10 paid employees raquo Include self-employed artisans (electricians plumbers) and professionals

Small enterprise raquo 1 1 - 5 0 employees raquo More established than very small enterprises formal and registered raquo fixed business premises raquo Owner managed but more complex management structure

Medium enterprise

51 - 2 0 0 employees

Still mainly owner managed but decentralised management structure with division of labour Operates from fixed premises with all formal requirements

Note Women represent approximately 56 percent of the survivalist company category 38 percent of micro-enterprises with no employees and 15 percent of micro-enterprises with 1-4 employees

Source South African Government (2008)

32

Small business can also be divided between established formal SMMEs in predominantly urban settings and emerging SMME economy situated in townships informal settlements and rural areas According to the White paper by far the largest sector is the survivalist enterprise sector This implies that most people are active in the informal sector where they have little institutional support

The governments national small business strategy seeks to address the following

common problems faced by SMMEs (South African Government Information 20081)

bull An unfavourable legal environment

bull Lack of access to markets and procurement

bull Lack of access to finance and credit

bull Low skills levels

bull Lack of access to information

bull Shortage of effective supportive institutions

The White paper and Act sets out the objectives of our SMME development policy as (South Africa 1996377)

bull Alleviating poverty by making it possible for poor people to generate income to meet

basic needs

bull Reducing poverty through employment creation

bull Redistribution of wealth income and opportunities

bull Contributing to economic growth by improving innovation and thus competitiveness

The Act provided the foundation for the establishment of the institutions listed in the table 23 below to support small businesses

33

Table 24 Small business support institutions

Institution Services Target

Centre for Small Business Promotion

This is a Chief directorate in the DTI responsible for policy and coordinashytion of support programmes for SMMEs It also mobilises funds and supervises the establishment of new institutions

Ntsika Enterprise Promotion Agency

Provides non-financial support such as mentoring programmes business advice help with government tenders and technology support to small enterprises through bull Local business service centres

(LBSC) bull Tender Advice Centres (TACs)

Targets survivalist micro and very small enterprises Majority of the LBSCs focus on start-up business targeting unemployed women and youth

Khula Provides access to finance through bull Khula Credit Guarantee Scheme

- provide guarantee products to banks

bull Other institutions and NGOs referred to as Retail Finance Intermediaries (RFIs) which borrow from Khula to make loans to SMMEs

bull Khula-Start access to micro credit in rural areas

Mainly targets very small small and medium enterprises Have two small programmes forthe survivalist and micro sector

IMAMAC Two key programmes bull Manufacturing advisory centres

(MACs) providing support for small scale manufacturing businesses

bull Business Referral and Information Network (BRAIN) -information and a help line

The MACs are mainly for small and medium more formal businesses BRAIN forthe entire spectrum of SMMEs

34

Instftution Services Target

Provincial SMME desks

To provide a one-stop information centre to SMMEs and developing enabling government policy to support SMMEs in each province Activities of the SMME desks include (though not in all provinces)

bull Keeping data bases of SMMEs in the province

bull Developing SMME orientated procurement and sub-contracting policies for provincial government

bull Targeted support programmes forHDIs women contractors tourism entrepreneurs smallmicro manufacturers

Land Bank Finance agricultural businesses From small to large scale farmers

Industrial Development Corporation

Supports and funds various industrial development programmes

Predominantly large scale projects but some small to medium enterprises Has a specific BEE mandate

National Empowerment Corporation

Funded by government it provides funding for black economic empowerment ventures

Large but also small and medium enterprises


As part of the National Skills Development Strategy the Sector Education and Training

Authorities (SETAs) are also supposed to develop programmes that help develop small

businesses in their respective sectors

There are a number of other parastatals which also support small businesses though

mainly at the upper end of the spectrum These include

bull Independent Development Corporation (IDC) tourism development venture capital

low interest empowerment and emerging entrepreneur schemes

bull South African Bureau of Standards (SABS) through its missing links programme

provide quality assistance and awareness to SMMEs

35

bull Centre for Science and Industrial Research (CSIR) product improvement and

manufacturing assistance to SMMEs through their National Manufacturing Centre

The institutions and organisations mentioned above also provide a wide range of business management support services to entrepreneurs and small enterprises such as (South African Government Information 2008 1)

bull Developing business plans

bull Doing market research

bull Managing a small business

bull Legal requirements of small businesses

bull Marketing

bull Business development

bull Advice on government tender processes

The national small business strategy since its inception sought to target women However women continue to make up the bulk of the survivalist sector of SMMEs and of the poor During the last decade a number of organisations and institutions were established by and for women entrepreneurs Table 24 refers to a number of such organisations

These support programmes however have not achieved their objectives if judged against the number of SMMEs that utilise them Rogerson (2004 212) estimate that a mere 6 of SMMEs and entrepreneurs utilise support programmes and argue that this is due to distrust of external agencies among SMMEs and incapacity to raise awareness about their existence and efficiency Moreover the poor coordination of service providers results in a replication of services and clustering of institutions in urban areas (Ntsika 19994)

36

Table 25 Women entrepreneurship associations and networks

South African Women Entrepreneurs Network (SAWEN) -launched July 2001

SAWEN identifies the origin of women entrepreneurs problems as bull Gender-despite the fact that women-owned enterprises are contributing an

increasing share to national revenue they are generally perceived to lack the capacity of their male equivalents

bull Size - Nearly all women-owned enterprises belong to the lower end of the SMME category being either very small or micro sized companies Men are predominant in the more lucrative sectors Approximately 70 percent of informal businesses in South Africa are ownedcontrolled by women

SAWEN seeks to affiliate all women enterprise groups co-operatives organisations and initiatives in to a national umbrella body that will represent and articulate the aspirations of all women entrepreneurs (potential and existing) that operate within the South African SMME sector as well as lobby for their support needs It also seeks to target rural women Since its launch in 2001 it has established a number of provincial chapters

Women in Oil and Energy in South Africa (WOESA)-launched March 2002

Facilitates the participation of women in business ventures in the oil gas and other energy sectors

Technology for Women in Business (TW1P)

Aimed at enhancing the accessibility of science and technology to women in business in particular SMMEs It is a national programme under the auspices of the Department of Trade and Industry (DTI) The CSIR as contracted by DTI acts as an agent for DTI to implement the TWIB programme

South African Women in Construction -launched August 1999

Promotion and advancement of women in construction of education and contribution to the betterment of the construction industry and the enhancement of the entrepreneurial development of women-owned enterprises in construction


37

24 ECONOMIC IMPACT OF EKURHULENI

241 Ekurtiuleni demographic

The Metropolitan Municipality of Ekurtiuleni was established in 2000 and covers a vast

area for approximately 45 kilometres from west to east and for 55 kilometres from north

to south covering an area of approximately 26421 square kilometres (EMM 2007 4)

This large area is divided for administrative efficacy into the Northern Southern and Eastern Service Delivery Regions (SDRs) and is one of six Metropolitan Municipalities resulting from the restructuring of local government (refer to figure 21)

Figure 21 Map of Ekurhuleni (former East Rand) region

r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi

tmdashJ 0 Johannesburg _ pound International v

y trade trade Airport

I Bedrordview

bull

bull Bonon 1 GetmMon bullgt

Boksburg m Bnkpan 1

i Springs

Alberton J Eaitem Region

J Southern Region 1 ff ^

(f Nigallaquo

^

(f Nigallaquo


38

I

The former local administrations of nine towns in the East Rand - Alberton Benoni Boksburg Brakpan EdenvaleLethabong Germiston Kempton ParkTembisa Nigel and Springs -were amalgamated into the new Metropolitan Municipality along with two other councils - the Kyalami Metropolitan Council and the Eastern Gauteng Services Council It is a vibrant cosmopolitan and culturally diverse region with over 25 million residents as replicated in Table 25

Table 25 Ekurhuleni key comparative statistics

Key Statistics (2007 estimates) Ekurhuleni Gauteng National Region area (sq km) 2642 1 16975 1 1221246

Population 2534180 8845741 46710858

Population density (nr of people persq km) 959 521 38

Economically active population (as of total pop) 53 53 39

No of households 787040 2731869 12144712

Average household income (Rand current prices) 88025 115817 70326

Annual per capita income (Rand current prices) 27338 35768 18284

Gini coefficient 057 060 064

Formal sector employment estimates 679213 3156772 9058793

Informal sector employment estimates 84249 362647 1699327

Unemployment rate (expanded definition) 40 35 41

Percentage of persons in poverty 27 27 46

Poverty gap (R million) 974 3251 3 32960

Human development index (HDI) 067 069 059

Index of Buying power (IBP) 008 034 100

Economic output in 2003 (R million current prices) 84000 416562 1100929

Share of economic output (GVA of SA in current prices)

76 378 100

Economic output in 2003 (R1 million constant 1995 prices)

48074 236846 619790

Share of Economic output (GVA of SA in constant 1995 prices)

78 382 100

Economic growth performance 1996-2003 (GVA growth pa constant 1995 prices)

24 37 25

Source Ekurhuleni metropolitan municipality (20075)

39

Ekurhuleni constitutes 56 of the national population and makes up 28 of Gautengs population The population density is approximately 1 250 people per km2 making Ekurhuleni one of the most densely populated areas in the country and province By comparison population density in Gauteng is 513 people per km2 and 38 people per km2 in the country

The area has around 8 000 industries and is responsible for about 23 percent of the gross geographical product of Gauteng province which is sub-Saharan Africas most economically powerful and active region (EMM 2007 9)

242 Ekurhuleni economics

The Ekurhuleni Metropolitan economy is larger and more diverse than that of many of the smaller countries in Africa including all the countries in Southern Africa It accounts for nearly a quarter of the Gauteng economy which in turn contributes over a third of the national GDP Ekurhuleni contributes seven percent to the countrys spending power and seven percent to the nations production In most respects per capita income unemployment poverty average wages and other indicators of human development - it is similar to the rest of Gauteng (EMM 2007 9)

However there is one important structural difference many of the plants for production of goods and commodities are located in Ekurhuleni Manufacturing in Ekurhuleni accounts for just under 20 of the GDP of Gauteng In Ekurhuleni itself manufacturing accounts for some 28 of total production

Because of the largest concentration of industry in the whole of South Africa (and in Africa) Ekurhuleni is often referred to as Africas Workshop (EMM 2007 9) The downside of the manufacturing sector is that globalisation has a definitive impact on the structure of production and on the demand for labour Ekurhuleni although not benefiting from direct capital investments as a result of the automotive sector developments in the country continues to play the role of the workshop of the economy

40

with production of structural steel and fabricated metal products serving as inputs into other areas economies

Despite the area historically being one of the largest producers of gold the major

economic sectors now include manufacturing wholesale and trade energy and

services and finance with manufacturing and industry in Ekurhuleni comprising 40 of

all activity in the Province Mining contributes only 2 to Ekurhuleni economy (EMM

2007 4)

Annual economic growth in Ekurhuleni has recorded a pickup in the period 1998 to

2003 and has been almost double the rate of the national manufacturing growth rate

The economically active population is 52 compared to 38 nationally Household

income and per capita income exceed the national average by 10 and 33

respectively The percentage of people living in poverty nationally is 49 compared to

29 in Ekurhuleni (EMM 2007 4)

243 Ekurhuleni infrastructure

Ekurhuleni has a network of roads airports rail lines telephones electricity grids and telecommunications that rivals that of Europe and America - a first world infrastructure supporting a well established industrial and commercial complex Ekurhuleni can in fact be regarded as the transportation hub of the country The municipality is home to the OR Thambo International Airport the busiest airport in Africa and services the entire continent and links to major cities throughout the world Similarly many of the worlds leading airlines fly into the OR Thambo Airport Some 14 million passengers pass through this airport each year In addition a number of smaller domestic airlines connect the OR Thambo Airport with cities throughout South Africa (EMM 2007 4)

South Africas largest railway hub is in Ekurhuleni [Germiston] and links the city to all the major population centres and ports in the Southern African region

41

A number of South Africas modern freeways and expressways connect Ekurhuleni to

other cities and provinces The Maputo corridor development South Africas most

advanced spatial development initiative connects Ekurhuleni with Mozambiques capital

and largest Indian Ocean port Direct rail road and air links connect Ekurhuleni to

Durban South Africas largest and busiest port

During the period 1995 to 2005 the Gauteng government made strategic investments in

upgrading some of the ageing road networks linked to the industrial hub to promote the

movement of goods and services The Blue IQ projects situated within Ekurhuleni

include the Wadeville-Alrode Industrial Corridor with linkages to the largest logistical

hub the City Deep Container terminal the planned Gautrain rapid rail link to

Johannesburg and Tshwane and the OR Thambo Industrial Development Zone [IDZ]

The latter aims to cluster light manufacturing more especially in beneficiation and to

develop an aero space park The EMMs annual budget is in the region of R11 billion of

which plusmnR1 billion is being budgeted annually for capital projects in line with the priorities

set in the Integrated Development Plan [IDP] The bulk of this expenditure is dedicated

to upgrading facilities and infrastructure backlogs (EMM 2007 9)

The three major land cover classes are natural untransformed areas cultivated land and

urban residential zones as presented in figure 22

42

Figure 22 Estimate land coverage in Ekurhuleni for 2007

Transformed (industrial)

Transformed (commercial)mdash-

2

Transformed (urban)

27

Transformed (cuftivatjon) mdash mdash

15 Transformed

(forestry) 1

Transformed (mining)

5

Natural 43

Degraded 001

Transformed (grazing)

2

Source Ekurhuleni Metropolitan Municipality (2007 9)

The following are notable patterns in land use (EMM 2007 4)

bull There is a central east-west orientated mining and industrial activity belt which

served as the core around which towns were established

bull A belt of residential developments surrounding the industrial activity belt and

bull Ruralagricultural areas to the northeast and in the central portion in the southern

part of EMM

The mining belt was historically the core around which the various towns and settlements were established Four major concentrations of mines and quarries exist Reiger Park between Gemniston and Boksburg the area east of Benoni an area east and south of Springs and 3 sites in the vidnity of Kwatsaduza The first 3 areas are respectively known as the GermistonBoksburg the BenoniBrakpanSprings and the SpringsNigel mining belts Mining occurs in a linear form along a belt which runs to the

43

I

north of the Germiston and Boksburg Central Business Districts (CBDs) and then along

a broad strip of land roughly between the Benoni CBD and Daveyton to the north and

Brakpan and Springs to the south To the south between Springs and Nigel another

major concentration of mining activity exists (EMM 2007 4)

Most of the urban activity is concentrated along the western edge and central spine of EMM The road engineering and social infrastructure strongly correlates to this urban form (EMM 2007 4)

The largest complex of small-holdings is situated in an east-west band lying east of

Kempton Park and north-west of Daveyton The second largest complex is situated west

of KwaThema surrounding the Sallies Gold Mine and Springs Municipal Crushers

There are other smaller patches of agricultural holdings scattered throughout the

metropolitan area (EMM 2007 5)

The EMM has an evenly distributed multi-nodal structure The central business district

however currently experience problems of urban decay as the cream of the retail

component of the CBDs have been drawn away to the four main shopping malls in the

area - Eastgate East Rand Mall Lakeside Mall and Alberton Mall Commercial activities

make good use of the main transport routes to provide access to such activities

Furthermore there is an imbalance in the distribution of land use for commercial activity

which is concentrated within higher income areas (Kempton Park Edenvaie a portion of

Bedfordview Boksburg Central Benoni Central Brakpan and small portions of Springs)

(EMM 2007 7)

In common with most black townships in the country there is very little formal commercial activity within the township complexes

Industrial activities are largely located within the south-western part of the metropolitan area in areas such as Germiston and Alrode These areas tend to be located near mining land and wedged between lower income areas (Katorus southern Benoni

KwaThema Tsakane small portion of Springs and areas north of Etwatwa) and the

higher income areas (between Alberton and Katlehong Germiston and

SpruitviewLeondale) Within Kempton Park and Edenvale some industrial activity

developed around the airport due to the agglomeration benefits and access to airfreight

transport facilities Industrial activities are also closely linked to the railway system

(EMM 2007 7)

Farming activities (cultivation) are grouped in the north-eastern part of EMM where more than a third of the land is cultivated This includes areas surrounding Bapsfontein areas north of the Benoni Agricultural Holdings and east of the R21 highway Smaller agricultural activities lie just south of Sunward Park while the remaining agricultural activities are grouped on the southern border of the metropolitan area (EMM 2007 4) During the past five years the EMM has made steady progress in developing its strategic planning capacity and process The Integrated Development Planning [IDP] process was institutionalised within national guidelines for local government planning and budgeting and the IDP together with its strategic sectoral plans such as the Spatial Development Framework [SDF] has become the principal strategic planning tool within the local authority However the IDP primarily deals with solutions to immediate development challenges within a five year time frame Therefore a holistic long term development vision and strategy for Ekurhuleni which will create common purpose between all development stakeholders and which will act as a guiding framework within which the IDPs can be formulated is needed (EMM 2007 8) With the above in mind the EMM embarked on a process to formulate a long-term development strategy During 2004 research was undertaken on national and international best practice examples as well as on key success factors relating to city development strategies This led to a strategy being formulated in early 2005 The strategy formulation process kicked off with a Mayoral Committee workshop on 29 January 2005 during which it was resolved to name the strategy the Ekurhuleni Growth and Development Strategy [GDS] 2025 as well as proposed 2025 development agenda (EMM 2007 8)

25 SUMMARY

Economically entrepreneurship invigorates markets The formation of new business leads to job creator) and has a multiplying effect on the economy Socially entrepreneurship empowers citizens generates innovation and changes mindsets These changes have the potential to integrate developing countries into the global economy (UNECE 2004 2)

The promotion of the SMME sector is a critical dimension of a broader employment

creation strategy because the creation of new firms is essential if the development of

stronger linkages through procurement is to materialise

If South Africa is to grow out of poverty unemployment and create a more prosperous

future it will need more SMMEs entrepreneurs and bigger businesses However to

achieve this a better environment is required for entrepreneurs to start up businesses

operate and grow (Mahadea 2008 3) Within the context of overall macro-economic

performance the ideal policy package for SMME support in South Africa should allow

this sector to maximise its contribution to the economys overall performance in terms of

growth employment and income distribution This is likely to involve making more

resources available to the sector as well as raising the efficiency with which it uses the

resources already available to it

Ekurhuleni has to be one of the best areas for doing business in Africa Its infrastructure facilities location and business climate all help make Ekurhuleni attractive to any business proposition and international investors but with this come the reality of an amends competitive environment therefore creating an environment with tremendous challenges for the entrepreneur

CHAPTER 3 LITERATURE REVIEW ON WOMEN ENTREPRENEURSHIP

31 INTRODUCTION

The emergence and growth of viable women-owned entrepreneurial new business ventures have generated value and fuelled innovation on community and global levels The increased presence has had a remarkable impact on employment and on business environments worldwide (Kantor 2001 8)

Scholarly research in this area has examined the many forms of economic and social

value that women-owned businesses generate vis-a-vis peculiar barriers constraining their establishment and growth (Verwey 2006 3 Botha 2006 126 Cliff 1998 526 McClelland Swail Bell amp Ibbotson 2005 8) These barriers constitute unique challenges for women as research has shown that men are able to surmount them more easily

The intensity of research studies in this area has increased as scholars and

policymakers have begun to devote more serious attention toward understanding and

supporting women entrepreneurs

The purpose of this section is to provide an evaluative summary of the literature on

woman entrepreneurship and through this enhance the understanding of the profile of

the woman entrepreneur

32 ENTREPRENEURSHIP AS AN AREA OF STUDY

Entrepreneurship as an area of study has been claimed by a number of different

disciplines including psychology and economics each arriving at different definitions

derived from their own disciplines

47

Baruah (2005 3) are of the opinion that to an economist an entrepreneur is one who

brings resources labour materials and other assets into combinations that make their

value greater than before and also one who introduces changes innovations and a

new order To a psychologist such a person is typically driven by certain forces the

needs to obtain or attain something to experiment to accomplish or perhaps to escape

the authority of others (Hisrich Peters amp Shepherd 2005 8)

A series of studies recognise the need to re-think the people side of entrepreneurship research (Kouriloff 2000 62 Simon amp Houghton 2002 106 Keh Foo amp Lim 2002 136 Markman Balkin amp Baron 2002 162 Shepherd amp Krueger 2002 177 Gatewood Shaver Powers amp Gartner 2002 200 Korunka Frank Lueger amp Mugler 2003 35 Mitchell Busenitz Lant McDougall Morse amp Smith 2002 94)

Defining the term entrepreneurship is a difficult exercise in itself as the term has little specific definition either in common usage or in academic research (Arif 2008 5) In describing the key factors which are seen to influence entrepreneurial roles this review will strive to encapsulate some meaning behind the term entrepreneurship

Research has shown several approaches by different researchers in the development of

an entrepreneurship definition According to Bennett and Dann (2000 3) much will

depend on the viewpoint and academic background of the researcher as well as the

time period the researcher refrained at Table 31 gives a brief summary as to the

development of the term entrepreneurship

48

Table 31 Main contributors to entrepreneurship in theory

Year Researcher Entrepreneurial Role (ER)

Classical era 1755 R Cantillon Introduced the term Entrepreneur ER as speculator

1800 JB Say ER as coordinator

Early Neoclassical era 1890 A Marshall ER as coordinator innovator arbitrageur

1907 FB Hawley ER as owner of output (uncertainty bearer)

1911 J Schumpeter ER as innovator

1921 F Knight ER as responsible decision maker in an uncertain environment

1925 F Edgeworth ER as coordinator

Mature Neoclassical era

1925 M Dobb ER as innovator

1927 C Tuttle ER as responsible owner in an uncertain environment

Modem Neoclassical era

1973 l Kirzner ER arbitrageur and alertto profitable opportunities

1982 M Casson ER coordination of scarce resources under uncertainty

1993 W Baumol ER innovator and manager influenced by existing incentive structure

Source Aidis (20035)

These definitions are the natural point of departure because they have been the decisive

factor for the retrieval of data for the works of many researchers

For the purpose of this study the definition of Hisrich Peters and Shepherd (2005 8) was adopted The authors defined entrepreneurship as follows Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort assuming the accompanying financial psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence

49

I

33 GENDER ENTREPRENEURSHIP

Previous research into gender differences among entrepreneurs has yielded varied explanations as to why female entrepreneurs differ from male entrepreneurs A review of literature reveals that female entrepreneurs do have some characteristics that are unique in comparison to their male counterparts and that they have faced significant challenges in their efforts as they venture into a once male dominated environment This following section presents a comparative assessment of differences in entrepreneurial attributes of male and female individuals as to emphasise the unique environment where within women entrepreneurs operates

The social feminism theory asserts that women entrepreneurs have different but equally

effective qualities values and ways of thinking due to variations in early and ongoing

socialisation processes (Kutani amp Bayraktaroglu 2003 3)

Affholder and Box (2004 3) are of the opinion that the research on personality seems to

have conflicting results some researchers finding no significant differences between

male and female entrepreneurs and others identifying specific personality differences

Table 32 emphasise the unique differences between male and female entrepreneurs as concluded by several researchers Due to the voluminous work completed in this regard the purpose of this presentation is not to supply a comprehensive review of current literature available but rather to compile a summary overview off research conducted as to encapsulate an overall body of knowledge in regards to observed gender characteristics in entrepreneurs

Table 32 Identification of gender differences in entrepreneurs hip

Characteristic Female entrepreneurs Male entrepreneurs

Research

Personality characteristics

Women are expected to possess higher communal qualities such as selflessness a concern for others and interpersonal sensitivity Female entrepreneurs tended to be visionaries and catalysts

Men are expected to have high levels of self-assertion self-expansion and the urge to master Male entrepreneurs tended to be more traditionalists

(Affholder amp Box 2004 3)

(Greene Hart Gatewood Brush amp Carter 20031)

(Du Rietz Henrekson 2000 5)

Area of importance

Women tend to assign more importance to social values and qualitative ambiguous measures of achievement and success such as personal fulfilment and strong interpersonal relations Women business owners tend to pursue a balance between economic goals such as profit and growth and non-economic goals such as product quality personal enjoyment and helping others

Men tend to assign more emphasis on economic values and quantitative non-ambiguous measures of achievement of success such as status and wealth

(Carter Anderson amp Shaw 20011)

(Gundry Ben-Yoseph amp Possig 2002 80)

Success factors

Women will measure success qualitatively as they will look at interpersonal relationships and other less objective criteria such as personal satisfaction customer service ratings and additional employment created

Men will measure success quantitatively as they will look at size market position turnover and profitability

(Verwey 2006 3)

(Botha 2006126)

(Sigh Reynolds amp Muhammad 2001 180)

Growth elements

Female entrepreneurs tend to have less industry management and prior business start-up experience and that contribute to their modest growth expectations Women face domestic demands remaining the primary parent emotional nurturer and housekeeper despite their entrepreneurial ventures impacting on their ventures growth prospects report

The primary family responsibility of m e n - t o be a good provider is compatible with heading a growing firm

CKyro 20011)

(Cliff 1998526)

(Kantor 20014)

Source Own compilation

51

331 Motivation

Motivation is the factor other than knowledge that energizes directs and sustains an

individuals behaviour (Locke amp Latham 1990 7) According to Bennett and Dann (2000

6) motivation is an essential factor in the establishment of entrepreneurial activity Many

individuals have the characteristics that enable them to identify an opportunity combined

with the resources to implement the venture yet do not have the incentive or motivation

to do so

Botha (2006 122) proposed two closely-related explanations of entrepreneurial

motivation the push theory and the pull theory The push theory argues that

individuals are pushed into entrepreneurship by negative external forces such as job

dissatisfaction difficulty finding employment insufficient salary or an inflexible work

schedule The push or negative factors are therefore associated with the necessity

factors that force the female into pursuing her business idea McClelland Swail Bell and

Ibbotson (2005 85) emphasize that in this situation becoming an entrepreneur is not a

first choice but nevertheless argue that such negative motivational factors are more

important with entrepreneurs drawn from certain groups in society that may face

discrimination such as ethnic minority groups younger age groups and women

The pull or positive factors are those associated with factors of choice and the desire

for entrepreneurial aspirations The pull theory therefore contends that individuals are

attracted into entrepreneurial activities seeking independence self-fulfilment wealth

and other desirable outcomes (Hogskola 2008 19)

To date a numerous of studies have examined womens motivations for becoming

entrepreneurs The following summary provides an overview of key motWaiional factors

identified in several studies

I

Table 33 Push and pull motivational factors

PULL MOTIVATIONAL FACTORS

MOTIVATIONA FACTOR STUDY

Desire for greater independence Bradley and Boles (2003301) Marlow (1997208) Hisrich and Peters (1996 98) Hughes (2006109)

Provides a challenge Hughes (2006109)

Improved financial opportunity Hughes (2006109) Marlow (1997208)

Self-fulfilment Borgia Schoenfeld and Segal (20053) Hughes (2006109) Bruni Gherardi and Poggio (2004260)

Desire to be own boss DeMatino and Barbato (2003 830) Hughes (2006109)

Flexibility for balancing family and work Borgia ef al (20053) Carter Gartner Shaver and Gatewood (2003 17) Hughes (2006109) Lombard (2001216)

Potential to develop a hobby Bradley and Boles (2003301) Marlow (1997208)

Gaining recognition of others Eckel and Grossman (2002288)

Role model influence Anna Chandler Jansen and Mero (2000392)

PUSH MOTIVATIONAL FACTORS

Job dissatisfaction Borgia et al (20053) Tangiguchi (2002 882)

Prolonged joblessness Hughes (2006109)

Lack of available work Hughes (2006109)

Insufficient salary Borgia et al (20053)

Hitting the glass ceiling Georgellis and Wall (20041)

Involuntary layoff Hughes (2006109)

Career frustration Marlow (1997208)


While is it difficult to compare studies given the wide range of approaches and measures

used this overview nevertheless allows this review to identify the most commonly cited

motivators across several different contexts and time periods

332 Opportunity identification

According to Reynolds Hay Bygrave Camp and Autio (2000 5) the ability to perceive

good business opportunities is assumed to be important for entrepreneurship

Kepler and Shane (2007 200) state that female entrepreneurs search for new business

opportunities differently than male entrepreneurs for a variety of reasons

First many opportunities are identified through information that is transferred through

social networks Women have different types of social networks than men (Renzulli

Aldrich amp Moody 2000 534) As a result they have access to different sources of

information about opportunities For instance male entrepreneurs are more likely than

female entrepreneurs to identify opportunities through conversations with investors and

bankers because on average they know more investors and bankers (Anna Chandler

Jansen amp Mero 2000 392)

Second learned behaviours and social norms lead men and women to develop different

cognitive processing styles (Cassar 2006 628) As a result on average men and

women gather information and solve problems differently (DeMatino amp Barbato 2003

830) For instance female entrepreneurs are thought to learn from a greater variety of

sources than male entrepreneurs while male entrepreneurs are thought to learn more

from setbacks than female entrepreneurs (Lombard 2001 217) In addition the greater

risk aversion of female entrepreneurs may lead them to search for more information that

mitigates the potential risks about business opportunities than their male counterparts

(Eckel amp Grossman 2003 290)

333 Type of business started

Kepler and Shane (2007 309 ) are of the opinion that male and female entrepreneurs

do not start the same types of businesses Historically women entrepreneurship

activities were concentrated in the apparel cosmetics and food processing fields

(Taylor 1988 38) Whereas McVicar and Craig (1981 11) listed traditional categories in

their study of service-related businesses such as cooking teaching child care

secretarial services and sewing Female-led businesses are more likely to be found in

personal services and retail trade and less likely to be found in manufacturing and high

technology (Anna et al 2000 290 Brush et a 2006 18) In addition women start

businesses that are less growth-oriented and less driven by opportunity and more

oriented towards wage substitution (Eckel amp Grossman 2002 290)

Some researchers argue that gender differences in the types of businesses that men

and women found are the result of socialisation and structural barriers (Kepler amp Shane

2007 309) Women tend to work in certain occupations and industries because these

occupations and industries are more socially acceptable for women and because

women face obstacles to working in other industries and occupations (Marlow 1997

153) Sigh Reynolds and Muhammad (2007 180) argues that because entrepreneurs

tend to identify opportunities to start businesses that are similar in type and industry to

those in which they previously worked the tendency of women to work in certain types

of businesses leads them to start those types of businesses In addition some

businesses cannot be founded easily by people without the appropriate educational

background This is particularly the case for businesses that rely heavily on technology

Because women are less likely than men to study engineering or science (Brush et al

2006) they often lack the education to start businesses that demand technical skills

Furthermore some businesses are inherently easier to start than others because they

have lower barriers to entry (Boden amp Nucci 2000 353) Women may be more likely to

start businesses that face low barriers to entry because these businesses make lesser

55

demands on human or financial capital than other businesses and women may lack

these types of capital

334 Venture size

Women start businesses that are smaller than those started by men (Kepler amp Shane

2007) Studies of surviving businesses show that those that are women-owned are

smaller than those that are men-owned (Brown 2000 5) In addition women start

businesses with lower levels of initial employment and capitalization than men (Renzulli

et al 2000540)

The smaller scale of female-led start-ups is believed to be the result of a lack of access

to larger-scale business opportunities and the financial resources necessary to develop

them and different goals and intentions for their businesses (McClelland e^ al 2005

100)

335 Unique challenges facing women entrepreneurs

Richardson (2004 2) argues that while women are active in entrepreneurship they face

particular problems and challenges in starting and developing their businesses They

face more or at least different social cultural educational and technological challenges

than men when it comes to establishing and developing their own enterprises and

accessing economic resources (Mayoux 2001 20)

Kantor (20016) is of the opinion that constraints affecting the entrepreneur in general

but women more intensively include

bull Access to financing

bull Information bull Productive resources and markets

bull Levels of skills and knowledge

56

bull Relevance of education and experience

bull Effects of market saturation

bull Compliance costs

Furthermore it is recognised that women in most societies carry the added burden of

family and domestic responsibilities and this has a detrimental or limiting impact upon

their ability to generate income outside of the home

Kepler and Shane (2007) are of the opinion that research suggests that social norms

about the role of women in society the shortage of female role models and the greater

household- burdens faced by women lead female entrepreneurs to face more start-up

problems and for those problems to be of greater magnitude than their male

counterparts For instance attitudes toward the role of women make it more difficult for

female entrepreneurs to be taken seriously as business people (Kutani amp Bayraktaroglu

2003 3) and to gain support for their entrepreneurial activities from their spouses

family and friends (Bradley amp Boles 2003 301) In addition the relative shortage of

female role models makes it more difficult for female entrepreneurs to obtain adequate

mentorship for their start-up efforts Furthermore the greater household and childcare

responsibilities of women lead them to have more trouble balancing business formation

and family responsibilities (Affholder amp Box 2004 18)

Research finds that one of the major barriers for women entrepreneurs are the access to capital finance (Revivo-Steiner 2006 20) Lack of access to capital has been a primary obstacle for women entrepreneurs and recent research suggests it continues to be (Gundry Ben-Yoseph amp Posig 2002 72) This could also include start-up financing and credit cash flow management in the early operations and financial planning Research suggests that the primary source of funding for women has been through family loans personal savings credit cards and home equity loans (Gundry Ben-Yoseph and Posig 2002) In fact Verwey (2006 5) found that womens personal savings constitute between 80 and 99 of initial capitalisation compared to men where the figure is between 30 and 59 Some of the reasons stem from stereotypes created by the

57

masculine mentality in the banking industry (Weiler amp Bernasek 2001 92) Women are

entering an environment constructed by men therefore they may be perceived as less

legitimate in the eyes of prospective financial backers

Information is another resource that women entrepreneurs have difficulty accessing (ONeill amp Viljoen 2001 40) The information can be about markets suppliers export opportunities Large enterprises often have greater power time and resources to both access information for themselves and limit others access to it (Kouriloff 2000 65) Information can be obtained through informal networks as well as through membership in organizations such as trade guilds associations and unions (Kantor 2001 6) Female compared to male owners may have greater difficulty in accessing information because of difficulties in attending events due to their dual work roles and the resulting time constraints (Edwards 2001 58)

A lack of relevant skills and knowledge constrains the growth potential of entrepreneurial businesses (Kyro 2001 2) This is compounded by deficiencies in basic education Women tend to be less likely to have had education and experience relevant to starting and managing a business and thus have less potential for success (Botha 2006 30) Gaining relevant skills and knowledge also can be more difficult for women since their double work burden and childcare responsibilities make them less able to attend formal and informal training than men (Brush eiai 2006 18)

Kantor (2001 8) points out that womens more demanding role in the family relative to mens affects their entrepreneurial ability by reducing the time energy and concentration levels women can apply to their market work Women may have lower earnings and productivity levels since the amount of time they have available for market work will be limited by the time necessary to care for the family and their concentration while working may be reduced if there are multiple distractions leading to a further reduction in productivity and earnings (Hogskola 2008 25) Responsibility for household welfare also may make women more risk averse while societal perceptions of womens gender roles influence their treatment when they step outside of the perceived boundaries of

58

these roles limiting their access to the resources required for successful entrepreneurship (Anna etal 2000 291)

336 Growth Strategies

A relatively unexplored dimension of entrepreneurship on which male and female entrepreneurs are supposed to differ is their attitude towards growth (Verwey 2006 1) The process through which women-led entrepreneurial firms plan and achieve continual and sustainable growth often reflects a complex set of motivators and intentions that support this strategic path

Cliff (1998523) however researched whether gender differences do exist through quantitative as well as qualitative analysis of personal interviews with 229 small business owners in the Greater Vancouver are of British Columbia Canada Her study provided novel insights into the factors affecting an entrepreneurs growth decision and desired pace of expansion She found that both male and female entrepreneurs desire growth but there are important differences with respect to how they wish to expand (Verwey 2006 1)

Casale and Posel (2000 180) are of the opinion that female entrepreneurs are more likely to establish maximum business size thresholds beyond which they do not wish to expand and that moreover these thresholds are smaller than those set by male entrepreneurs This size relates to what she can manage and control with comfort balancing work and personal life Women tend to deliberately adopt a slow and steady pace of expansion as personal considerations appear to ovenide economic considerations in the business expansion decision According to Cliff (1998523) the attainment of such size thresholds appear to be a key trigger in the no-growth decision

This managed approach by female entrepreneurs to business expansion not letting growth get out of control may result in ventures that are able to out survive those headed by entrepreneurs pursuing more risky high-growth strategies (Bennett amp Dann

59

2000 78) This might lead to banks viewing women as lesser loan risks given their more cautious approach toward growth (Eckel amp Grossman 2000 288) Further research is needed to determine whether these different strategy approaches towards growth would affect venture performance If a more cautious approach leads to long-term survival of the firm awareness should be raised of the favourable outcomes of a more cautious approach This would require recognition that one approach to business ownership - the desire to head a large quickly growing enterprise may not necessarily fit all (Taniguchi 2002 888)

34 WOMEN ENTREPRENEURSHIP DEVELOPMENT AND SUPPORT

Jalbert (200055) are of the opinion that womens entrepreneurship is gaining increasing

recognition in public policy circles National governments and international organisations

alike are coming to realise that fostering womens economic development through

enterprise creation can have a positive impact in a number of areas

First and foremost it enhances economic growth and provides employment opportunities for the owners and their workers In addition providing economic opportunities for women can also improve the social educational and health status of women and their families

The nature of the multitudinous challenges and obstacles facing women entrepreneurs suggest that their full economic potential is not fully actualised and women do not feature on the mainstream of the economic agenda One aspect that may be the route course of this dilemma that is faced by many female entrepreneurs may be the lack of proper support (De Groot 2001 9) Support is a potentially important means of raising the level of entrepreneurship in society overall

This section provides an overview of some efforts that are supporting the development of women-owned businesses Although this analysis is not a comprehensive review of

60

current literature and research it provides the best of what is known about womens

entrepreneurship

The objective of women entrepreneurship promotion is to create awareness of enterprise as an attractive employment option among women and to raise the profile of women entrepreneurs as credible role models to others It is a particularly important aspect in reinforcing the social value of entrepreneurship in the economy and in positioning it as a viable and feasible activity (International Labour Office (1LO) 2004 12)

The following examples illustrate how it is possible to promote effectively female entrepreneurship across a broad range of actions For example this might include (International Labour Office (ILO) 2004 12)

bull The establishment of specific institutions for (potential) female entrepreneurs

bull The provision of targeted support services and programmes the implementation of

electronic platforms for women entrepreneurs

bull The organisation of specific events targeted at female entrepreneurs

Before actual awareness campaigns can be initiated it is of the utmost importance to

establish an entrepreneurial environment that will in fact be attractive to potential women

entrepreneurs

While a growing body of literature exists on entrepreneurial environments the literature is highly fragmented Reviewing the empirical literature one can observe that Me research or even conceptualisation of the environment for entrepreneurship - enabling or otherwise - has been completed (Sannikova 20074) Some gaps that are evident in the literature are (Fogel 1994 1)

First a conceptual framework is lacking to integrate the available literature on

entrepreneurial environments

61

Second explicit links have not been established between the needs of

entrepreneurs and how environments can fulfil entrepreneurs needs induce or

reinforce their desire to go into business and thus facilitate the process of new

venture creation Third limited guidelines exist to conduct empirical research on entrepreneurial

environments

Finally a limited body of literature addresses the needs of policy makers despite the

recognition of this group as an important audience for research on entrepreneurship

One potential theory with implications for environmental factors and entrepreneurship is the resource dependence theory The resource dependence theory is based on the notion that environments are the source of scarce resources

The framework highlighted in figure 31 outline the key resources that support the

creation of an enabling environment for womens entrepreneurship These are

(Sannikova 20074)

bull Policy coordination and legal environment

bull Finance and Premises

bull Training and mentoring

bull Business Support

bull Network

bull Promotion

62

Figure 31 Framework for supporting women entrepreneurship activity

Source Sannikova (200718-19)

This framework fall inline with current issues addressed by the International Labour Office (ILO) In line with the ILOs gender policy the approach to women entrepreneurship seeks to redress existing gender imbalances in enterprise development through approaches and activities aimed specifically at women while simultaneously working with constituents to ensure that all small enterprise initiatives address gender in their formulation and roll-out The ILOs work to date has been in four main areas (Intemational Labour Office (ILO) 200412)

bull The development of a knowledge base on women entrepreneurs bull The development of a variety of support services for women entrepreneurs and their

service providers bull Supporting advocacy bull Developing internal and external partnerships

63

In 2002 the Austrian Institute for Small Business Research conducted a comprehensive study in regards to good practices in the promotion of female entrepreneurship (Austrian Institute for Small business research 2002 105) They studied all available support organisations and programmes available to women entrepreneurs in Europe

A few critical success factors supporting good practice in the promotion of female entrepreneurship may be elaborated from the experience provided in this study These include (Austrian Institute for Small business research 2002105)

bull Agencies should use female mentors trainers and advisers whenever possible to

increase the relevance of measures for women and to provide role models

bull Measures should be designed for both groups and individuals Group based

measures give women a chance to make contacts to network and to learn from the

experience of others Individual-based measures allow women to receive highly

effective advice directly related to the problems they face

bull Measures supporting enterprise start-ups should focus on sectors that can provide

women with an adequate income thereby increasing womens financial self-

sufficiency Strategies to move women into higher value markets in traditional or new

sectors are therefore important

bull Training measures should apply a modular approach with both a set of basic

courses such as costing marketing accounting and negotiation and the opportunity

to select from a set of additional courses in various substantive areas This would

make the training flexible and give clients the independence to choose the skills on

which they want to focus

bull Training measures should also include entrepreneurship development training in

order to foster the attitudes important to starting and managing ones own business

Business skills may not be sufficient for women who often lack confidence and belief

in their own abilities as entrepreneurs

bull Post-start-up support should be offered to trainees after having applied skills learned

in earlier training This may for example be offered by means of mentoring

64

addressing the specific problems faced by women entrepreneurs Additionally pre-

start-up mentoring can help women thinking about starting a business to determine if

it is really the right career choice

bull Women entrepreneurs should not be the only focus of business support and

personal development measures Reaching girls in order to encourage them to

become entrepreneurs and to develop their belief in their abilities is also important

bull Finally access to credit should be a key element in business support as limited

access to finance is a constraint faced by many entrepreneurs both female and

male Different methods of providing access to finance such as loan guarantees or

partnerships with formal financial institutions can reduce the costs of providing

credits to micro entrepreneurs and women entrepreneurs in particular

It has been demonstrated that there are various ways to tackle general and more specific problems faced by female entrepreneurs As many of the obstacles faced by women entrepreneurs are common all over the world most of the good practices that have been described above are not country-specific but might enrich the pool of possible actions in other countries as well

35 SUMMARY

Growing evidence asserts that womens entrepreneurship while differentiated is fundamentally different than mens It is apparent that women are crafting new visions and models of entrepreneurship and are experiencing unique processes entwining the developing self values of work life and family and the personal dynamics of change with the processes of developing and leading a business These phenomena deserve careful and critical exploration if we are to understand radical changes now occurring in women business owners work-lives and enterprise development The importance of supporting women entrepreneurship extends beyond academic relevance Government officials and NGOs have expressed interest in women entrepreneurship in countries in transition as a key to stimulating economies

65

Academics have been recommended to develop policy makers understanding by studying conditions and processes that encourage women entrepreneurship There is a particular theoretical need to conceptualise this environment and to test the environmental variables associated with women entrepreneurs

This support in developed countries usually has one main points to maximize the economic potential of self-employed women and also to encourage taking up of self-employment amongst women from disadvantaged backgrounds

Clearly the development of female entrepreneurship needs support through policies and adequate institutions in many areas such as education and training access to credit and financing access to information business networks and new technologies The Governments in partnership with other stakeholders should take the lead and responsibility for establishing institutions and policies aimed at development of SMEs These policies however should be gender sensitive and address specific barriers in entrepreneurial activities

It is increasingly recognised that entrepreneurship support offers a new model for

fighting poverty and ensuring economic growth in countries

66

CHAPTER 4 RESULTS AND DISCUSSION OF THE EMPIRICAL STUDY

41 INTRODUCTION

The purpose of this chapter is to present what has been empirically observed as set in the context of the research objectives and design as well as in relation to the broader problem area Hence in the discussion the findings are interpreted in the light of the research questions The various methodological issues and considerations involved in the gathering of the data are also discussed

42 GATHERING OF DATA

This section contains a thorough explanation of the various methodological issues and considerations involved in obtaining and handling the data used in the study It has been divided into two parts each of which concerns a different component of the data collection gathering process

421 Development and construction of questionnaire

As explained in chapter one the survey instrument utilised in the study was a

standardised questionnaire Information could either be entered by the respondents

themselves or the review used it as a structure for face to face interviewing

The first step was to design a questionnaire with questions and items developed from the initial research problem and the literature study conducted

Questions or items of the same kind or that seek the same sort of information was grouped together They fell into a range of categories where some consisted of a small number of related questions The intend was to elicit information of a particular type

67

Analytical categories relevant to the research were determined from the literature These

topics were aggregated by unit of analysis

bull Section A Personal information

- Age - Marital status

- Educational level

- Number and age of children

- Employment history

bull Section B Business information

- Industry - Legal status of business

- Age of business

- Path to business ownership

- Source of start-up funding

- Business premises

- Number of employees

- Annual turnover

- Previous exposure to business

bull Section C Wlotivational factors and demographic aspects

bull Section D Obstacles towards women entrepreneurship

- During start-up phase of business

- During current operations

bull Section E Development needs of female entrepreneurs

- Previous development by private or government agency

- Women entrepreneurship association awareness

68

- Needs classification

In section A B and E the questionnaire was designed so that the responded could indicate the applicable answer by marking a designated block with a cross More than one block could be marked where applicable

In section C and D a Seven point Likert scale method was applied to measure

responses that range from disagree strongly to agree strongly A value of one will be

linked to disagree strongly and a value of seven to agree strongly

The idea of using the Likert scale method is that instead of learning whether or not the respondent was favourably inclined on an issue one also gets a measure and a reasonably reliable one of the actual position on the continuum However this method is frequently criticised because a number of unique response patterns can result in the same total score (Tull amp Hawkins 1980 322)

422 Data collection

The questionnaire in the form of printed copies was distributed to 100 women

entrepreneurs in Ekurhuleni as a result of the sampling method applied

The study made use of both a convenience sampling method and secondly made use of

a snowball sampling method

Snowball sampling relies on referrals from initial subjects to generate additional subjects Therefore base selection of a primary informant took place The base selected for this study was the Chamber of Commerce for Gauteng which acted as an informant of women owned businesses Referrals were contacted to confirm if they adhere to the definition of small and medium-sized women owned businesses More referrals were subsequently collected by theses women owned business expanding the database It

69

may be extremely difficult or cost prohibitive to locate respondents in these situations A

list of 100 women owned business was compiled as a result of these efforts

Techniques for distributing questionnaires included e-mail personal delivery and structured interviews

This review aimed to distribute questionnaires to wide variety business sectors demographic locations and races as to obtain a representative view of women entrepreneurs

Business sectors included were ie retail trade wholesale trade manufacturing construction transportdistribution accommodation and restaurant food industry agricultureforestryfishing and services

Demographic areas included all towns within the boundaries of Ekurhuleni ie Alberton Benoni Boksburg Brakpan Endenvale Lethabong Germiston Kempton Park Tembisa Nigel and Springs

A period of two weeks for responding to the questionnaire were allowed from where

questionnaires were collected either personally by the researcher or via facsimile and e-

mail

A total of 80 usable questionnaires were returned from the sample This constitutes a

80 response rate

The major reasons for non returns faced during the process were the limited time available to the respondents to complete the questionnaires due to busy work schedules and the availability of certain owners that resided overseas

70

43 BIOGRAPHICAL INFORMATION OF THE RESPONDENTS

431 Age group description of respondents

bull Purpose of question

The purpose of question A1 in Section A of the questionnaire (refer to Appendix A) was

to determine the age group description of respondents

bull Results obtained

The age groups of all women entrepreneurs that responded to the survey are presented

in Table 41 below

Table 41 Age group description of respondents

Age group Frequency Percentage 40 to 49 years old 27 3375

30 to 39 years old 20 2500

50 to 59 years old 14 1750

20 tot 29 years old 12 1500

60+ years old 6 750

lt19 years old 1 125

Total 80 10000

Analysis of the results

The biggest category in this review is represented by the 40 to 49 year old group (refer

to table 41) were 3375 of the respondents indicated the age group A fourth (25) of

the respondents represents the 30 to 39 year age group

71

The remainder of the group constitutes less than 20 of the respondents where 1750

represents the 50 to 59 age group 1500 the 20 to 29 year old 750 the 60+ group

and 125) less than 19 years old respectively

All respondents answered the question

432 Marital status of respondents


The purpose of question A2 Section A (refer to Appendix A) of the questionnaire was to

determine the marital status of respondents The results will be used to determine if

there is any link between the marital status of the women and their path to self

employment


The marital status of all women entrepreneurs that responded to the survey are

presented in Table 42 below

Table 42 Marital status of respondents

Marital status Frequency Percentage Married 52 6500

Single 10 1250

Widowed 9 1125

Divorced 7 875 Missing 2 250

Total 80 10000

72

bull Analysis of the results

Table 42 indicates that more than half that is 52 (6500) of the respondents are married A total of 1250 of respondents are single 1125 are widowed and 875 are divorced

Two respondents did not indicate their marital status

433 Highest academic qualification of respondents


The purpose of question A3 Section A (refer to Appendix A) of the questionnaire was to determine the highest academic qualification of the participants The results will be utilised in determining the influence of previous education on the specific development needs of women entrepreneurs


The highest academic qualification of all women entrepreneurs that responded to the survey are presented in Table 43 below

Table 43 Highest academic qualification of respondents

Highest academic qualification Frequency Percentage Diploma (Technical college orTechnicon) 29 3625 University degree 29 3625

Matric 16 2000

Certificate 4 500

Post graduate degree 2 250

Total 80 10000

73


Table 43 indicates that a diploma and university degree constitute the largest group of all responses Both the diploma and university degree represent 3625 of the respondents respectively

A total of 16 (2000) of the respondents indicated a matric as their highest academic qualification whereas four respondents (500) indicated a certificate and two (250) indicated a post graduate degree


434 Number of children



determine the number of children of the participants


The number of children of all women entrepreneurs that responded to the survey is


74

Table 44 Number of children of respondents

Number of children Frequency Percentage Two (2) children 31 3875

One (1) child 14 1750

Three (3) children 14 1750 None 10 1250

Four (4) children 8 1000

Five (5) children 3 375

Total 80 10000


The majority of the respondents (3875) have only 2 children A total of 1750 are

presented equally by both the one child and three child groups A total of 10 (1250)

respondents have no children Eight (1000) respondents have four children and three

or 375 have five children


435 Age group description of children



determine the age of children of the participants The results will be utilised in

determining if the age of children might have an influence on the path to business

ownership and act as an obstacle due to family responsibility to women entrepreneurs

75


The age of children of all women entrepreneurs that responded to the survey is


Table 45 Age group description of children

Age group description Frequency Percentage 18+years old 25 3125

11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000


Table 45 indicates that the majority of the respondents (25 or 3125) children are

older than 18 years A total of 15 (1875) of the respondents children are between 11

and 18 years 13 (1625) between one to five years old and nine (1125) between six

and 10 years old

A total of ten (1250) of the respondents indicated that they do not have children

whereas eight respondents did not answer the question

76

44 STRUCTURE OF PARTICIPATING WOMEN-OWNED BUSINESSES

441 Number of permanent employees


The purpose of question B7 Section B (refer to Appendix A) of the questionnaire was to

determine the number of permanent employees of the participating women owned

businesses and to determine whether the family business can be classified as a micro-

very small- small- or a medium-sized enterprise


Table 46 Number of permanent employees

Number of permanent employees Frequency Percentage 2-4 30 3750 26-50 23 2875

Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000


A combined forty (5000) of the women owned business can be classified as micro-

enterprise from which 30 (3750) of the business have two to four employees and 10

(1250) of the businesses are only operated by the entrepreneur herself

77

A total of ten (125) of the businesses can be classified as very small enterprise

consisting of five to ten employees

Small-enterprises are represented by twenty seven (3375) of the businesses with four

(5) employed of 11 to 25 employees and 23 (2875) 26 to 50 employees

Only two (250) of the businesses surveyed can be classified as medium-enterprise

Of the 80 respondents only one responded (125) did not answer the question

Figure 46 indicates that the majority of the businesses surveyed falls into the micro-

enterprise category

442 Turnover of the business


The purpose of question B8 in Section B (refer to Appendix A) of the questionnaire was

to obtain information on the financial success and the size of the participating women

owned businesses


The annual turnover of the women owned businesses in this study is presented in table

47

I

Table 47 Annual turnover of the business

Annual turnover Frequency Percentage R100 000 to R500 000 27 3375

R1 million to R5 million 20 2500

R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000


Twenty seven (3375) of the family businesses annual turnover were between the R100 000 to R500 000 range followed by twenty (2500) between the R1 to R5 million range eighteen (2250) in the R500 000 to R1 million range nine (1125) in the R50 000 to R100 000 range and six (75) in the more than R5 million range

All participants answered the question

443 Economic sector of operation



to obtain information on the economic sector that the women owned businesses

operates in The sector may have an influence on specific needs for the women owned

businesses as well as policy implications


The economic sector of operation of the women owned businesses in this study is

presented in table 48

79

I

Table 48 Economic sector of operation

Economic sector Frequency Percentage Retail trade 33 4125

Services 26 3250

Accommodation and restaurant 7 875

Wholesale trade 6 750

Manufacturing trade 4 500

Transportdistribution 2 250

Food industry 2 250

Total 80 10000


A total of 33 (4125)) of the businesses in this study operate in retail trade that also represents that largest group within this review The service category is represented by 26 (3250) of the respondents This include the following businesses ie bakery school transport ballet studios swimming lessons DVD rentals garden services cleaning services doggy parlour dry cleaning wedding planning landscaping physiotherapy attorney petrol garage dress maker hair salons catering services graphic design party rentals business machine servicing and beauty salons

Other industries of operation includes seven (875) businesses in accommodation and

restaurant six (750) in wholesale trade four (500) businesses in manufacturing

and two (250) in distribution and food industry respectively


80

444 Legal status of business



to obtain information on the legal status of the women owned businesses that

participated in this study The legal status of the women owned businesses may have

an impact on the specific needs of the women entrepreneur


The legal status of the women owned businesses in this study is presented in table 49

Table 49 Legal status of business

Category Frequency Percentage Sole proprietorship 42 5250

Partnership 18 2250

Company (Private) 12 1500

Not registered 7 875

Close corporation 1 125

Total 80 10000


Just more than half (52505)) of the participating women-owned businesses in this

study are registered as sole proprietorship 18 (2250) are registered partnerships 12

(1500) as private companies and one (125) business indicated a close corporation

A total of seven (875) of the businesses in this study is however not registered None

of the business indicated a business trust or public company All respondents answered

the question

81

445 Business premises







The premises from where the women owned businesses in this study are operating from

are presented in table 410

Table 410 Business premises

Business district Frequency Percentage Outlying business area 50 6250

Home based 16 2000

Central business district (CBD) 12 1500

Agriculture 2 250

Total 80 10000


More than half (6250) of the respondents operate their business from an outlying

business area as indicated in table 410 A total of 16 (20) of the businesses in this

review are home-based with only 12 (1500) situated in a central business district

Agriculture land is only utilised by two (250) of the women owned businesses in this

review None of the respondent businesses operates from an industrial area

All respondents answered this question

82

446 Age of business


The purpose of question B3 Section B (refer to Appendix A) of the questionnaire was to determine the age of all women owned businesses that participated in this review


The age groups of all women owned businesses that responded to the survey are


Table 411 Age of business

Age of business Frequency Percentage One (1) to five (5) years old 45 5625

Six (6) to 10 years old 24 3000

11 to 20 years old 6 750


31 to 40 years old 1 125 41 to 50 years old 1 125


According to table 411 more than half (5625) of the respondents businesses are relatively young and fall under the one to five year old category A large group of 24 (30) of the participating businesses are between six and 10 years old The remainder of the categories are represented by less than 10 of the respondents where six (750) business are between 11 and 20 years old three (375) between 21 and 30 years and 1 (125) between 31 to 40 years and one (125) between 41 to 50 years respectively All respondents answered the question

83

45 PATH TO OWNERSHIP

451 Path to business ownership



determine the path to business ownership of respondents


The path to business ownership of all women entrepreneurs that responded to the

survey are presented in Table 412 below

Table 412 Path to business ownership

Path to business ownership Frequency Percentage

Founded the business 52 6500

Purchase the business 25 3125

Join family business 2 250

Missing 1 125

Total 80 10000


Table 412 reflects that 52 (6500) of the businesses studied in this review were

founded by the entrepreneur Just less than a third or 25 (3125) of the businesses

were purchased A total of two (250) respondents actually joined family businesses

and one (125) did not answer the question

84

452 Previous employment experience


The purpose of question A5 Section A (refer to Appendix A) of the questionnaire was to determine the previous employment experience of the participants The results will be utilised in determining the influence of previous experience on the specific development needs of women entrepreneurs The respondents had the option to choose between six experience levels categories


The previous employment experience of all women entrepreneurs that responded to the survey are presented in Table 413 below

Table 413 Previous employment experience

Previous employment experience Frequency Percentage Worker (administration clerk secretary cashier) 34 4250

Self-employed 14 1750

Supervisor 11 1375

Middle management 9 1125

Unemployed 8 1000

Top management 4 500

Total 80 10000

85


Less than half (4250) of the respondents were previously employed as non-

management workers whereas only 11 (1375) of the respondents were supervisors A

total of nine (1125) of respondents indicated that they were employed in middle

management with only four (5) in top management A number of eight (1000)

respondents were previously unemployed

A quite interesting observation is the 14 or 1750 of respondents that were previously

self-employed that also constitute the second largest group in this review


453 Years self-employed



determine the number of years self employed of the participants


The number of years self-employed of all women entrepreneurs that responded to the


86

Table 414 Years self-employed

Number of years self-employed Frequency Percentage Four (4) to five (5) years 27 3375 Six (6) to 10 years 26 3250 One (1) to Three (3) years 14 1750

More than 10 years 12 1500

Missing 1 125

Total 80 10000


The majority of respondents are between four and ten years self-employed A number of

27 (3375) of the respondents has indicated a four to five year period and 26 (3250)

indicating a six to 10 year period The remainder of the age groups are represented by

less than 20 of the respondents where 14 (1750) fall within the relative young one

to three year category and 12 (1500) in the established more than ten year category

Only one (125) respondent did not answer the question

454 Source of start-up funding



determine the source of start-up funding of the participants


The source of start-up funding of all women entrepreneurs that responded to the survey

is presented in Table 415 below

87

Table 415 Source of start-up funding

Source of start-up funding Frequency Percentage Bank loan 30 3750

Personal savings 29 3625

Relatives 10 1250

Householdspouse 5 625

Sold business 4 500

Missing 2 250

Total 80 10000


Both bank loan and personal savings constitutes the largest sources for start-up funding

with 30 (3750) made use of bank loans and 29 (3625) utilised personal savings

A total of 10 (1250) respondents collected start-up funds from relatives and five

(625) from a household member or spouse A number of four (500) respondents

sold their previous business to obtain funds

Respondents not answering the question accounted for 250 of the sample

455 Role models


The purpose of question B9 Section B (refer to Appendix A) of the questionnaire was to determine if the respondents was inspired by someone during their youth to become an entrepreneur The results will be used to determine if there is any link between this previous influence and the women entrepreneurs decision to enter into self employment


The influence of role models on all women entrepreneurs that responded to the survey


Table 416 Role models

Influenced by role models Frequency Percentage No 68 8500

Yes 12 1500

Total 80 10000


The majority (8500) of respondents indicated that they had no one inspiring them to

become entrepreneurs where 12 (1500) of the respondents claimed that they had

some influence Eight respondents indicated that their parents owned businesses where

four indicated that close friends of the family motivated them from childhood to enter

own employment


456 First ownership


The purpose of question B10 Section B (refer to Appendix A) of the questionnaire was

to determine if the current business is the women entrepreneurs first self owned

business

89


An indication of first ownership of all women entrepreneurs that responded to the survey


Table 417 First ownership

Category Frequency Percentage

Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000


A total of 62 (7750)) of the respondents indicated that their current business is their

first business owned Only a small amount of 12 (1500) of the respondents indicated

previously owned business or no to the answer A total of seven of the business was

sold of four is still operating and one went out of business

Quite a large total of six (750) of the respondents did not answer the question at all

46 MOTIVATIONAL FACTORS

461 Women entrepreneurship motivational factors


The purpose of question C1-15 Section C (refer to Appendix A) of the questionnaire was to determine the main motivational factors for women entrepreneurs entering own business ventures The results will be utilised in determining the influence of these motivational factors on the specific development needs of women entrepreneurs

90


The average response or mean (x) and the standard deviation (s) (variation around the

mean) of each of the 15 items indicating motivational factors for entering own

employment are indicated in Table 418

Table 418 Women entrepreneurship motivational factors

Motivation n X s

Need for a challenge 80 6250 1326

Self-fulfilment 79 6215 1356

Confidence in the productservice offered 80 6188 0813

Insufficient family income 80 5513 1765

The need for independence 80 5488 1800

Dissatisfaction with salaried jobs (job career frustration) 80 5363 1759

Role models and other peoples influences (friends amp family members) 80 5150 1870

Need forflexible work schedule 80 5063 2143

Desire for wealth 80 4900 1900

Ensure high job security 80 4700 2095

To develop hobby 78 4654 2373

Compatibility with family duties 80 4238 2279

Difficulty finding a job 80 3750 2405

Redundancy (lost your job retrenchment) 80 2650 1822

Entered the family business 80 1825 1310

Total 4796 0906


The standard deviations of all 15 statements averages are fairly high ranging from

0813 to 2405

Likert scale type questionnaire (eg where 1 = Strongly disagree 7 = Strongly agree) represent disagreement with the statement and relatively high numbers represent agreement with the statement Thus a higher number representing agreement with the statement suggests that the statement is perceived to be true by the respondents Likewise a low number representing disagreement with the statement suggests that the statement is perceived to be false

The motivational statement indicating the highest agreement was need for challenge Participants indicated a very high average mean of x = 6250 for this statement Other

statements that also obtained high levels of agreement was self-fulfilment (x = 6215)

and confidence in the productservice offered (x = 6188)

Five items indicated average means higher than five Insufficient family income indicated an average mean of x = 5513 the need for independence an average mean

of x= 5488 dissatisfaction with salaried jobs (job career frustration) an average

mean of x= 5363 role models and other peoples influences (friends amp family members) an average x- 5150 and the need for flexible work schedule an average mean of x = 5063

Five items indicated average means higher than four Desire for wealth indicated an

average mean of x = 4900 ensure high job security an average mean ofx = 4700

to develop hobby and average mean ofx= 4654 and compatibility with family duties indicated an average mean of x =4238

Difficult finding a job only indicated an average mean of x = 3750 and redundancy (lost

their job retrenchment) an average mean of x = 2650

Entering family business was the statement with the lowest agreement standing on

an average mean of x = 1825

92

462 Ekurhuleni support


The purpose of question C17- 21 Section C (refer to Appendix A) of the questionnaire was to determine the women entrepreneurs feelings towards Ekurhuleni and the support this district is providing to their business operations The participating women entrepreneurs had to indicate their response on five statements The responses were set out on a Likert scale type questionnaire (eg where 1 = Strongly disagree 7 = Strongly agree) represent disagreement with the statement and relatively high numbers represent agreement with the statement


Women entrepreneurs feelings towards Ekurhuleni and the support this district is

providing to their business operations are reflected in Table 419 below

Table 419 Women entrepreneurs feelings towards Ekurhuleni and the support this district is providing to their business operations

Category n X s

Ekurhuleni is a source of ambient number of entrepreneurial opportunities 80 5288 1275

Ekurhuleni provides excellent base for export opportunities 80 5075 1100

Ekurhuleni infrastructure (electricity water road network) adequately meet the needs of my business 79 4772 1395

The Ekurhuleni region provides ambient network opportunities with other businesses 80 4325 1589

Ekurhuleni has proper policies in place for enhancing women entrepreneurship in the region 80 2563 1349

Total 4403 0837

93


An average mean of x = 5288 was calculated for the statement Ekurhuleni is a

source of ambient number of entrepreneurial opportunities This result indicates

that the participants have a relative high agreement with the statement A high

agreement was also calculated for Ekurhuleni provides excellent base for export

opportunities (x = 5075) Ekurhuleni infrastructure (electricity water road

network) adequately meet the needs of my business (x = 4772) and The

Ekurhuleni region provides ambient network opportunities with other businesses

(x = 4325)

The statement Ekurhuleni has proper policies in place for enhancing women

entrepreneurship in the region however indicated a very low level of agreement with a

standard mean of only x = 2563

463 Obstacles to business start-up


The presence of different institutional financial market and social barriers have for long

discouraged women to start and run their own business and many believe that those

barriers still exist today

The purpose of question D 1-14 Section D of the questionnaire (refer to Appendix A)

was to accumulate a body of knowledge of banners that were faced by current female

entrepreneurs in entering their own business ventures The respondents had to indicate

their response on fourteen statements The responses were set out on a Likert scale

type questionnaire (eg where 1 = Strongly disagree 7 = Strongly agree) represent

disagreement with the statement and relatively high numbers represent agreement with

the statement

94


Agreement to obstacles that the respondents experienced during the start-up phase of

their businesses are presented in Table 420 below

Table 420 Obstacles to business start-up

Obstacles n X s

Lack of business management skills 80 5888 1607

Inter role conflict (workhome conflict) 80 5725 1646

Lack of timely business information 80 5438 1422

Risk averse (great fear of failure) 79 5253 1829

Lack of self-confidence 79 5241 1876

AwarenessAccess to business support 80 5150 1700

Inequality of access to credit (difficult to obtain financing as a female) 80 4875 1760

Family pressures (gender-role expectations) 80 4838 2009

Isolation from business network 80 4713 1917

Lack of education and training (in general) 80 4625 2065

Legislative (lack of focused women entrepreneurship policies from regional municipalities or government) 80 4400 1718

Socio-cultural environment (lack of respect from male community and stereotype) 80 3750 1832

Lack of female role models 80 3475 1882

Total 4874 1091


All fourteen statements as reflected in table 419 indicated high levels of agreement The statement lack of business management skills was indicated as the highest level of agreement with an average mean of x= 5888 A total of five other statements also indicated relative high agreements with inter role conflict (workhome conflict) indicating a standard mean of x= 5725 lack of timely business information (x = 5438) risk averse (great fear of failure) (x = 5253) lack of self-confidence (x =

95

5241) and awareness or access to business support indicating an average mean of

x =5150

The statement with the least level of agreement was lack of female role models The

average mean for this statement was calculated as x = 3475

464 Obstacles currently faced in business


The purpose of question D 16- 27 Section D of the questionnaire (refer to Appendix A) was to accumulate a body of knowledge of barriers that were faced by female entrepreneurs currently operating their own business ventures The respondents had to indicate their response on 12 statements The responses were set out on a Likert scale type questionnaire (eg where 1 = Strongly disagree 7 = Strongly agree) represent disagreement with the statement and relatively high numbers represent agreement with the statement


Obstacles that the respondents are experiencing in their current business operations are reflected in Table 421

96

Table 421 Obstacles currently faced in business

Obstacles n X s

Liquidity and other financial problems 80 6225 1102

Gaining acceptancerespect of people (internally and externally) 80 5775 1405






No time for trainingupgrading of skills 80 4563 1948




Total 4764 0968


The statement with the highest level of agreement was liquidity and other financial

problems The average mean for this statement was calculated on a very high x -

6225

A total of three other statements also indicated relative high agreements with gaining acceptancerespect of people (internally and externally) indicating a standard mean

of x= 5775 inter role conflict (workhome conflict) (5c = 5538) and lack of business management skills indicating an average mean of x = 5488



97

I

47 SUPPORT NEEDS OF RESPONDENTS


The purpose of question E3 Section E of the questionnaire (refer to Appendix A) of the questionnaire was to determine the development needs of respondents (refer to table 421)


Development needs indicated by all women entrepreneurs that responded to the survey are presented in Table 422 below

Table 422 Support needs of respondents


Financial support 68 8500

Growth support 64 8000

Marketing support 62 7750

Business advice information counselling mentoring 57 7125

Networking with other business owners 55 6875

Women entrepreneurship specific based policies for the area 53 6625

Legal support 41 5125

Tools equipment machinery 38 4750

Trainingknowledgeskills 35 4375

Suitable business premises 33 4125

Psychological support 21 2625

Technical support 20 2500

Infrastructure (roads telephone electricity) 19 2375

98


A total of 68 (8500) of the respondents indicated that their greatest need is financial support with 64 (8000) also indicating growth support as a great need in the operation of their businesses A number of two categories also received high scoring with 62 (7750) respondents indicating marketing support and 57 (7125) indicating business advice information counselling and mentoring as support greatly needed

Almost half of the respondents also indicated that the following support will benefit their business A total of 41 (5125) of the participating women entrepreneurs indicated that legal support will benefit them 38 (4750) tools equipment and machinery support Trainingknowledge and skills was indicated by 4375 of respondents and a suitable business premises by 33 (4125) of the participating women entrepreneurs

Only 21 (2625) respondents indicated that psychological support will benefit them and

20 (2500o) indicated that technical support will be of use A small number of 19

(2375) indicated a need for infrastructure

48 SUMMARY

This chapter started of with the various methodological issues and considerations

involved in the gathering of the data from where results were presented in the form of

frequency tables on what has been empirically observed The results were analysed as

set in the context of the research objectives and design as well as in relation to the

broader problem area

Data explored during this study included biographical information of all participating women entrepreneurs This includes age group description marital status highest academic qualification number of children and age group description of children

This empirical research also undertook the task to gather information in regards to the structure of the participating women entrepreneurs businesses This information

99

included number of permanent employees annual turnover of the business economic

sector of operation legal status of the business the business premises and age of the

business

Path to ownership information was also recorded by this study that includes the

following Path to business ownership previous employment experience number of

years self-employed source of start-up funding influence of role models and first

ownership

Factors of importance also gathered by this review includes motivational factors to enter self employment women entrepreneurs feelings towards Ekurhuleni and the support this district is providing to their businesses obstacles to business start-up obstacles currently faced within business operations and support needs of respondents

The information gathered by the empirical research was utilised in the drafting of the

Ekurhuleni women entrepreneurship profile discussed in chapter five This profile will be

of purpose in the drafting of the women entrepreneurship development framework for

the Ekurhuleni district

100

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS

51 INTRODUCTION

Despite the large amount of research on the key factors influencing womens

entrepreneurship no study has yet provided an empirical field assessment of factors

influencing women at a municipality context

With the goal of delineating the unique circumstances of women entrepreneurs in Ekurhuleni this review undertook a study of 80 women entrepreneurial businesses The emergence and growth of viable women-owned entrepreneurial new business ventures in this area have generated value and fuelled innovation on all levels The increased presence of women entrepreneurs has had a remarkable impact on employment

The purpose of this chapter is therefore to conclude on the empirical study by compiling

a profile of the women entrepreneur in Ekurhuleni Theoretical applications of these links

would derive strong arguments

Recommendations to women entrepreneurship development for this area will be made followed by a critical evaluation of the study Suggestions for future studies will be implied and this chapter will be concluded by a summary

52 CONCLUSIONS ON THE EMPIRICAL STUDY

The following reflects the make-up of the Ekurhuleni female entrepreneur as concluded in the empirical study conducted

101

521 Biographical information results

The majority of the women entrepreneurs in the Ekurhuleni Metropolitan Municipality

that participated in this study are between 30 to 49 years of age She is furthermore

married with an average of two children mainly older than eighteen years The

entrepreneur is well littered with either a diploma or university degree

522 Structure of participating women-owned businesses results

The average women-owned business in Ekurhuleni is between one to five years old with

an annual turnover in the R100 000 to R500 000 range Operation is mainly within the

retail trade or service sector within the micro-enterprise environment Most businesses

can be found in outlying business areas The legal status of the participating businesses

is mainly reserved to sole proprietorships

523 Path to ownership results

The Ekurhuleni women-owned business is either founded or purchased by the female entrepreneur which are on average four to ten years self-employed and mostly a first-time owner A bank loan or personal funding provided start-up capital Owners were not motivated by childhood role models

524 Motivational factors to self employment results

The need for a challenge self-fulfilment and confidence in the product or service offered are the main motivators for these women entrepreneurs Factors such as difficulty f inding a job redundancy and entering of family business are least motivational

indicating that the average Ekurhuleni female entrepreneur are drawn to self-employment by pull factors rather than push factors (Botha 2006 122)

102

525 Support services offered by Ekurhuleni

For the average female entrepreneur Ekurhuleni will be a source of an ambient number of entrepreneurial opportunities The Ekurhuleni infrastructure meets the needs of their businesses and the region provides good network opportunities with other businesses However most of the participating women entrepreneurs feel that the Ekurhuleni Metropolitan Municipality do not have proper policies in place for enhancing women entrepreneurship in this district

526 Obstacles to business start-up results

The lack of business management skills inter-role conflict with home and work the lack of timely business information high risk aversion by women entrepreneurs lack of self-confidence and a lack of awareness or access to business support are all considered as huge obstacles faced by women entrepreneurs during the start-up phase of their respective business

Factors such as the socio-cultural environment that is a lack of respect from the male community and stereotyping and a lack of female role models are not considered as major obstacles to business start-ups

527 Obstacles experience in current business operations results

The main current obstacles experienced by the average female entrepreneur are liquidity and other financial problems Aspects such as the socio-cultural environment that is a lack of respect from the male community and stereotyping and a lack of female role models were once again recognised as the least considered obstacles in current business operations

103

528 Support needs results

The average female entrepreneur feels that they can mostly benefit from financial and growth support whereas psychological technical and infrastructure support are rated low on urgency

53 RECOMMENDATIONS

In the light of the research results explained a development framework was compiled to specifically address the needs of women entrepreneurship in Ekurhuleni Figure 51 represents the specific elements of the Ekurhuleni entrepreneurial development framework (refer to the next page)

Constraints faced by women entrepreneurs on in Ekurhuleni district are complex and calls for a parallel range of services to address them Broadly there are three kinds of services which will be effective in supporting these entrepreneurs and as a result addressing the various barriers faced by them ie promotion strategy and support

The main recommendation issued by this review is the establishing of an Ekurhuleni

women entrepreneurship development centre The main responsibility of this centre will

be the implementation and co-ordination of the recommendations listed below

104

Figure 51 A framework for the development of women entrepreneurship in Ekurhuleni

Own compilation

The purpose of the section to follow is to provide a description of the specific elements

within the recommended framework to develop women entrepreneurship in Ekurhuleni

105

531 Promotion

Recommendation

The review recommends the formation of a specific women entrepreneurship advocacy team within the overall development centre

Motivation

The main role of the advocacy team will be to raise the visibility of womens economic contribution and to change the policy to support womens role in the Ekurhuleni district It is important that the advocacy team are aware of the heterogeneity of their client group Without this awareness policy changes risk being unintentionally biased against a group such as women entrepreneurs

532 Strategy

Recommendation

It is recommended that women entrepreneurship specific policies be drafted within the

Ekurhuleni district and emphasis placed on continued research into the development of

the women entrepreneurs in the district

Motivation

bull The process of policy formulation has to incorporate gender mainstreaming strategies On a national base government has been introducing new gender-specific laws of a general nature but gender issues were not considered in all the other laws of relevance to womens entrepreneurship development

106

bull These policies must address awareness since many institutions are not aware of the gender-specific constraints of women entrepreneurs and therefore unable to address them adequately when providing the necessary services

bull Associations in charge of the enhancement of the status of women NGOs womens organisations and technical programmes could play an important role in emphasising gender issues in the creation of a more enabling policy and legal environment In this connection the importance of the systematic collection and analysis of gender specific data and information for gender-sensitive industrial policy formulation and implementation cannot be over emphasised This is necessary in order to identify the constraints and needs of women entrepreneurs prior to the formulation of any development programme targeting women

bull It is imperative that regional statistical agencies chambers of commerce and industry womens organisations and associations research organisations lobby groups and the municipality should strive for the systematic collection and analysis of information and data on women in industry with a specific focus on entrepreneurship

bull The creation of awareness about entrepreneurship requires the adoption of an entrepreneurial culture among potential women entrepreneurs and among youth in general as they are the future entrepreneurs This could be done if local support institutions professional assodations media and womens associations put emphasis on creating awareness about entrepreneurship Media and school campaigns exposure to role models and targeted training could also be used for this purpose

107

533 Support

bull Training

Recommendation

The development of proper training programmes focussing on the uniqueness of women entrepreneurs is a necessity

Motivation

bull Training is one of the most common business development services provided Training initiatives include both the provision of general business skills as well as skills more particular to an industry General business training includes basic business skills such as costing marketing accounting and negotiation and is usually a central element of an integrated service package Training in skills is often not sufficient for women and successful training programmes for women entrepreneurs therefore also include confidence building entrepreneurship developmenttraining fostering the attitudes important to starting and managing ones own business are just a few to mention

bull Programmes that not only confine themselves to training existing or potential women entrepreneurs but also make efforts to reach girls in order to encourage them to become entrepreneurs must be developed

bull A modular approach to the training programme design must be followed - it offers core courses and then allows clients to select other courses suiting their needs This makes the training flexible and gives clients the independence to choose the skills on which they lack the most or want to focus on

bull However successful programme designs are always those which are based on realistic needs-based assessments Women have different training needs in terms of course content scheduling length and delivery Programme designers must be aware of womens multiple roles and programmes should be scheduled when

108

women are likely to be free Participatory techniques and incremental learning using

female instructors are considered good teaching models for reaching women

entrepreneurs

bull Access to credit

Recommendation

A proper study into good practices should be launched to enhance accesses for women

entrepreneurs to credit from where specific plans must be drafted to ensure better

access to financing for these women entrepreneurs

Motivation

Credit is a constraint faced by many women entrepreneurs Women need to be able to

access mainstream banking and finance and need support in this area Increased

access to credit is a key to the development of women entrepreneurs in SMEs

bull Counselling and mentoring programmes

Recommendation

This study recommends the establishing of counselling and mentoring centres

Motivation

bull Individually-based services where clients receive help and support on problems

specific to their businesses have proven to be most effective

bull Counselling programmes tend to be expensive One way of cutting costs is by using

volunteers and using group-based services for more general issues

109

bull Attention must be paid to hiring female consultants avoiding a male environment and providing services sensitive to womens needs In addition gender training of consultants should be done

bull Many women want post-start-up support accessible after trying out the skills learned in earlier training Mentoring is one method of providing this support which can be very effective as it addresses the specific problems faced by the individual entrepreneur This kind of support includes individual or group-based assistance directed at specific problems where mentors serve as role models Based on a longer-term relationship with the mentor this is essentially a form of knowledge transfer It can be tailored to client needs and therefore can have high effectiveness and impact However it can also be costly in terms of mentors time

bull Mentoring can be offered to individuals or groups Individual mentoring is often more effective and have a greater impact as it addresses problems specific to the womens businesses Group-based mentoring offers other benefits such as group solidarity and the opportunity to learn from others experiences

bull However as mentioned earlier mentoring can be an expensive service to provide Many support agencies have cut costs by using volunteer mentors but mentor quality has to be monitored Supply of female mentors volunteer or not is sometimes a problem Coupling mentoring with a sectoral focus has emerged as a good strategy to help women to enter new industries Use of female mentors and having women-only group mentoring programmes increases the likelihood that women will use the services

bull Information sharing and network formation

Recommendation

The study wants to emphasize the need for the development of a specific women entrepreneur association within the Ekurhuleni district for the main purpose of networking and information sharing

110

Motivation

Information is a key resource for women entrepreneurs Information can relate to markets suppliers costs and technology and networks have emerged as key strategy for offering support to women entrepreneurs Networking is very important to the success of a business and it is identified as one of the key ways to strengthen womens enterprises as it can provide access to information new customers and suppliers Networks are relations with others in the business community and are an important way to access information

Sometimes training courses provide early networking opportunities giving practice

time to women before they go out to network in the wider business environment

Training courses also allow women to meet others starting businesses Networks can

also contribute to the knowledge and development of support agencies

Information exchange in the networks is provided through many means including one-

stop shops trade fairs and the Internet Information technology has proven to be an

important asset for accessing information and expanding networks Often the network

makes services and information available to entrepreneurs by toll free telephone fax in

person and through the Internet In fact the use of the internet has greatly helped to

widen the geographic areas of networks both between entrepreneurs and between

support agencies Internet allows clients to access it at times that suit their schedules

This helps women have greater access as they often have to juggle multiple demands

on their time Online networks and community business centres offer networking

opportunities Decentralized service provision also insures that the information provided

to local women is relevant to the local context

i l l

bull Support organisations

Recommendation

Accumulation of support organisations must take place Through awareness the involvement of organisations and institutions must be increased

Motivation

Many different types of organisations can provide either direct or indirect support to women entrepreneurs The different organisations working with women entrepreneurs include NGOs credit providers training and technical assistance centres research institutes and universities professional organisations government agencies and private sector organisations

Professional membership organisations have also emerged as important agencies which work to change policy and provide services and networks to members They work best when they serve a clientele with common interests The membership organisations must serve women business owners with gender being perceived as one commonality across which membership organisations can be established

Private sector actors other than banks or private training providers include suppliers of inputs final goods customers and consultants They work with women entrepreneurs through subcontracting arrangements and by supplying inputs raw materials used equipment or technical assistance These are viewed as an increasingly important source of assistance for women entrepreneurs particularly for-profit service providers In addition to this consultants may work with entrepreneurs directly for a fee or as volunteers For example some firms may volunteer their staffs time as consultants while some individuals working in the private sector may do so independent of their place of work

112

Universities and research institutes can also contribute to the development of women entrepreneurs through provision of trainers and consultants and through direct research on entrepreneurship with particular focus on women and by highlighting their contribution to the local regional and national economy In some cases they can also develop technologies to improve productivity and reduce the time burden of women

54 CRITICAL EVALUATION OF THE STUDY

The success of this study is based upon the realising of the primary and secondary

objectives as indicated in section 13 of this study

The primary objective of the study was to develop a contextual strategic framework to

enhance women entrepreneurship in Ekurhuleni

In order to reach the primary objectives successfully the following secondary objectives were formulated





business ventures

bull To examine current development programmes in a global context


Ekurhuleni district

The first secondary objective namely to gain insight into the role women entrepreneurs can play in the South African economy was achieved through a comprehensive literature study in chapter two This chapter act as a motivation to this question by supplying ambient evidence in the role women entrepreneurs plays in the South African economy

113

The second secondary objective that is to study the unique elements that Ekurhuleni can offer the female entrepreneur was also realised through the literature review in chapter two

The third secondary objective to identify challenges that female entrepreneurs may face entering and growing their own business ventures was achieved by both the literature review in chapter three and the detailed empirical research discussed in chapter four and concluded in chapter five

The fourth secondary objective to examine current development programmes in a

global context was realised through both chapter twos literature review focusing on

South African development programmes and a detailed description of international good

practices in chapter three

The last secondary objective to suggest practical recommendations to develop women entrepreneurship in the Ekurhuleni district was achieved through the results obtained during the empirical research discussed in chapter four and concluded in chapter five The results of this empirical research led to the development of a women entrepreneurship development framework as represented in section 53 of chapter five Practical recommendations forms part of the framework developed

Trough the achieving of all secondary objectives and the framework discussed in section

53 it can therefore be concluded that the primary objective namely the development of

a contextual strategic framework to enhance women entrepreneurship in Ekurhuleni

were achieved

55 SUGGESTION FOR FUTURE RESEARCH

Forthcoming work can build on this review by focusing on measuring the effectiveness

of programmes and initiative that was implemented due to recommendation issued in

section 53 of this review

114

Furthermore as explained earlier it is imperative that regional statistical agencies chambers of commerce and industry womens organisations and associations research organisations and the municipality should strive for the systematic and frequent collection and analysis of information and data on women in industry with a specific focus on entrepreneurship as to ensure that up to date and relevant programmes are in place to support the female entrepreneurs

56 SUMMARY

The purpose of this chapter was to conclude on the empirical study by compiling a profile of the women entrepreneur in Ekurhuleni A detailed description of the female entrepreneur in Ekurhuleni was given that included the following aspects The biographical information of the female entrepreneur was discussed followed by the structure of female owned businesses within Ekurhuleni The path to ownership was explored as well as the views of the entrepreneurs in regards to the support offered by Ekurhuleni the motivational factors to enter self-employment obstacles faced during the start-up phase obstacles that are currently experienced in daily operations and the support needs of the female entrepreneur

The empirical research resulted in recommendations to women entrepreneurship

development in Ekurhuleni being made That was followed by a critical evaluation of the

study in regards to the achievement of the research objectives Suggestions for future

studies were also recommended

Gender sensitivity of programme design and service delivery is critical Agencies which have a successful record in reaching women are always aware of the characteristics of their female and male clients and the gender-specific barriers affecting their economic participation when designing programmes Thus gender aware needs assessment is a vital tool to good service design and delivery

115

Furthermore developing a supportive environment for womens entrepreneurship is important to womens success This includes helping women to deal with their multiple roles and involving men families and communities (as appropriate) in womens entrepreneurship Support agencies must understand womens goals and objectives in becoming entrepreneurs and work to support those goals Providing for both practical and strategic gender needs is central to womens economic success While not all agencies can work at both levels the experience from developed countries shows that service providers should make an effort to partner with agencies which work to address deeper strategic issues through advocacy and policy change

Therefore an important learning is the need to couple programme actions with policy work In order to make long-term changes in womens ability to participate freely in the economy the socio-cultural constraints on women must be addressed Advocacy work should be directed at policymakers in order to raise their awareness of the important role of women in the economy and the positive effect of economic participation on women and their families

116

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httpwwwunorgrnilleriniumgoals

UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE (UNECE) 2004

Womens self employment and entrepreneurship in the ECE Region Regional

Symposium on Mainstreaming Gender into Economic Policies 28-30 January 2004

UNECE Secretariat Geneva

VERWEY I 2006 Development bank of Southern Africa Case studies on how women entrepreneur in construction experience the entrepreneurial process and manage growth Pp 1-10

129

WALKER C 2003 Piety in the sky gender policy and land reform in South Africa

Journal of Agrarian Change 3(1-2) 113-148

WEILER S amp BERNASEK A 2001 Dodging the glass ceiling Networks and the new

wave of women entrepreneurs The Social Science Journal 3885-103

WRONG DH 2007 Sociology [Web] httpencartamsncom [Date of access 2

February 2008]

ZAHRA SA IRELAND DR GUTIERREZ I amp HITT MA 2000 Privatization and

entrepreneurial transformation emerging issues and a future research agenda

130

Private Bag X6001 Potchefstroom Campus

W^P North-West University BUSINESS SCHOOL Potchefstroom

2520

Code number

APPENDIX A

QUESTIONNAIRE WOMEN ENTREPRENUERSHIP DEVELOPMENT IN

EKURHULENI

CONTACT DETAILS Ame1 Kock

Cell 082 783 0041 E-mail amekockmwebcoza

I9J NORTH-WEST UNIVERSITY YUNIBESIT1 YA BOKONE-BOPHIRIMA NOORDWES-UNIVERSITEIT POTCHEFSTROOM CAMPUS

WOMEN ENTREPRENEURSHIP DEVELOPMENT QUESTIONNAIRE PLEASE NOTE

This questionnaire must only be completed by women entrepreneurs in the Ekurhuleni District

All information will be treated as STRICTLY CONFIDENTIAL and will only be used for academic purposes

Instructions for completion

1 Please answer the questions as objectively and honestly as possible 2 Place a cross (x) in the space provided at each question which reflects your answer the

most accurately Use the following key 1 = Strongly disagree 2 = Disagree 3 = Slightly disagree 4 = Neutral view 5 = Slightly agree 6 = Agree 7 = Strongly agree

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B7 Ekurhuleni Municipality is assisting adequately in the needs of especially women entrepreneurs

1 2 3 4 laquo 6 7

It is essential you indicate your choice clearly with a pen

3 Where asked for comments or to express your own opinion keep answers short and to the point

4 Please answer all the questions as this will provide more information to the researcher so that an accurate analysis and interpretation of data can be made

Thank you for your co-operation We hope that you will find the questionnaire interesting and stimulating

l

SECTION A PERSONAL INFORMATION The following information is needed to help us with the statistical analysis of the data for comparisons among different businesses All your responses will be treated confidentially We appreciate your help in providing this important information

Mark the applicable block with a cross (X) Complete the applicable information

In which age group do you fall lt19 20-29 30-39 40-49 50-59 60+

(01) (02) (03) (04) (05) (06)

A2 What is your marital status Single Married Divorced Widowed

(01) (02) (03) (04)

Indicate your highest academic qualification

Lower than matric

Matric

Certificate

Diploma (Technical College orTechnicon)

University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)

Indicate the number of children that you have

None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)

Indicate the age of your children

No children

One (1) to five (5) years

Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2

A5 Indicate your past experience before self-employment (occupational background)

Unemployed

Self-employed (owned a business)

Worker (administration clerk secretary cashier)

Supervisor (first-line management)

Middle management

Top (executive) management

A6 Indicate the number of years that you are self-employed

Less than one (1) year

1 -3 years

4 - 5 years

6 - 1 0 years

More than 10 years Please specify

3

SECTION B BUSINESS INFORMATION


In which industry does your business operate

Retail trade

Wholesale trade

Manufacturing

Construction

Transportdistribution

Accommodation and restaurant (guest houses hotel)

Food industry

Agricultureforest ryfishing

Services (Please specify the type of service)

Other (Please specify)

(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)

Indicate the legal status of your business (form of business ownership)

Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

What is the age of the business (years)

Please specify

4

B4 Indicate your path to business ownership

Started (founded) the business (01)

Purchase the business (02)

Join the family business (03)

Inherited the business (from the family) (04)

Other (Please specify) (05)

B5 Indicate your source of start-up funding

Personal savings (01)

Borrowed orgifted(donated) from relative or friend (02)

Householdspouse (03)

Sold previous business (04)

Bank loan (05)


B6 Indicate the business premises (from where does the business operates)

From home (home-based) (01)

Central business district (CBD) (02)

Outlying business area (03)

Industrial area (03)

Agriculture land (04)


B7 How many permanent employees are employed by your business

Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt

Indicate the turnover (annual sales) that your business generates

Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000

R500 000 - R1 million

R1 million - R5 million

R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)

Did you have any exposure to business in your childhood (ie partents close family friend owned a business)

Yes (01)

No (02)

If yes who owned the business (Please specify - ie father mother sibling family friend close friend)

B10 Is the present business the first business that you own Yes (01)

No (02)

If no please indicate what happened to the business previously owned

Went out of business (03)

Still successful (04)

Sold of (05)


6

SECTION C MOTIVATIONAL FACTORS The purpose of this section is to determine which factors drove female entrepreneurs to

enter into their own business ventures

Indicate to what extent does you agree or disagree with the statements Mark the applicable block with a cross (X)

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MOTIVATION FOR ENTERING SELF-EMPLOYMENT OR TO START OWN BUSINESS

C1 The need for independence 2 3 4 5 6 7

C2 Need for flexible work schedule 2 3 4 5 6 7

C3 Need for a challenge 2 3 4 5 6 7

C4 Self-fulfilment 2 3 4 5 6 7

C5 To develop my hobby 2 3 4 5 6 7

C6 Role models and other peoples influences (friends amp family members 2 3 4 5 6 7

C7 Redundancy (lost your job retrenchment) 2 3 4 5 6 7

C8 Difficulty finding a job 2 3 4 5 6 7

C9 Dissatisfaction with salaried jobs (job career frustration) 2 3 4 5 6 7

C10 Compatibility with family duties 2 3 4 5 6 7

C11 Insufficient family income 2 3 4 5 6 7

C12 Desire for wealth 2 3 4 5 6 7

C13 Ensure high job security 2 3 4 5 6 7

C14 Entered the family business 2 3 4 5 6 7

C15 Confidence in the productservice offered 2 3 4 5 6 7

C16 Others (Please specify)

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DEMOGRAPHIC ASPECTS

C17 Ekurhuleni is a source of ambient number of entrepreneurial opportunities 2 3 4 5 6 7

C18 Ekurhuleni has proper policies in place for enhancing women entrepreneurship in the region 2 3 4 5 6 7

C19 The Ekurhuleni region provides ambient network opportunities with other businesses 2 3 4 5 6 7

C20 Ekurhuleni infrastructure (electricity water road network) adequately meet the needs of my business 2 3 4 5 6 7

C21 Ekurhuleni provides excellent base for export opportunities 2 3 4 5 6 7

C22 Other aspects of Ekurhuleni that motivated you in starting your business in this region

8

SECTION D OBSTACLES TOWARDS WOMEN ENTREPRENEURSHIP

The presence of different institutional financial market and social barriers has for long

discouraged women to start and run their own business and many believe that those barriers

still exist today The purpose of this section is to accumulate a body of knowledge of barriers

that were faced by current female entrepreneurs in entering and running their own business

ventures

Indicate to what extent does you agree or disagree with the statements Mark the applicable block Witha cross(X)

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FACTORS (OBSTACLES) THAT INHIBIT THE FEMALE ENTREPRENEUR TO START HER OWN BUSINESS

D1 Inter role conflict (workhome conflict) 2 3 4 5 6 7

D2 Family pressures (gender-role expectations) 2 3 4 5 6 7

D3 AwarenessAccess to business support 2 3 4 5 6 7

D4 Lack of timely business information 2 3 4 5 6 7

D5 Lack of female role models 2 3 4 5 6 7

D6 Isolation from business network 2 3 4 5 6 7

D7 Socio-cultural environment (lack of respect from male community and stereotype) 2 3 4 5 6 7

D8 Lack of business management skills 2 3 4 5 6 7

D9 Lack of education and training (in general) 2 3 4 5 6 7

D10 Inequality of access to credit (difficultto obtain financing as a female)

2 3 4 5 6 7

D11 Lack of self-confidence 2 3 4 5 6 7

D12 Risk averse (great fear of failure) 2 3 4 5 6 7

D13 Legislative (lack of focussed women entrepreneurship policies from regional municipalities or government)

2 3 4 5 6 7

D14 Other (Please specify)

9

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FACTORS (OBSTACLES) YOU ARE FACING CURRENTLY IN RUNNING YOUR BUSINESS









D23 Liquidity and other financial problems 2 3 4 5 6 7

D24 Gaining acceptancerespect of people (internally and externally) 2 3 4 5 6 7

D25 No timefortrainingupgrading of skills 2 3 4 5 6 7


SECTION E DEVELOPMENT NEEDS OF ENTREPRENEURS Mark the applicable block with a cross (X) Complete the applicable information

Have you ever been trained or developed by either a government agency or the private sector

Yes (01)

No (02)

If yes name the institution

Indicate the type of training that you received

Technical skills (ie hand crafting)

Communication skills

Accounting skills

Management skills

Technological skills (computers)


(04)

(05)

(06)

(07)

(08)

(09)

Do you know any organisation which is specifically established for women entrepreneurs

Yes (01)

No (02)

If yes what is the name of that organisation

How does the organisation helps to develop women entrepreneurs in their activities (Choose one or more)

Provides education and training

Provides financial assistance

Supportsenables networking with other women entrepreneurs

Provides accessexposure to motivational speakersrole models

Provides business information


(04)

(05)

(06)

(07)

(08)

(09)

11

Indicate your specific needs (Choose one or more)

Financial support

Trainingknowledgeskills

Tools equipment machinery

Business advice information counselling mentoring

Marketing support

Suitable business premises

Growth Support

Technical support

Psychological support

Networking with other business owners

Infrastructure (roads telephone electricity)

Legal support

Women entrepreneurship specific based policies for the area


THANK YOU FOR YOUR TIME

12

ABSTRACT

With nearly half of its population living in conditions of extreme poverty caused by

high unemployment rate the economic realities of South Africa are harsh And yet

the promise of sustainable development remains bright By creating economic

growth South African entrepreneurs are proving to be at the heart of that promise

and a key weapon in the fight against poverty (Mboweni 20001)

Small and medium enterprises (SMEs) and entrepreneurship form therefore

important parts of any national economy Governments have increasingly recognised

the importance of SMEs and entrepreneurship development It is now widely

recognised that a facilitative or enabling support programmes and the appropriate

regulatory environment is crucial to the development of small and medium

enterprises However programmes aimed at supporting SME and entrepreneurship

development tend to be gender neutral Womens economic potential may thus

remain under-utilised with attendant macro-economic consequences





(Edwards 2001 45) This is due to factors such as gender discrimination and

stereotypes differences in the way women and men approach entrepreneurship

difficulties in reconciling business and family obligations the choice of business types

and sectors information gaps lack of contacts and access to networking

Women entrepreneurship is still in its infancy in South Africa and only recently did the government start to focus on this dynamic field of high importance The Department of Trade and Industry (dti) has over the last few years tried to undertake a range of initiatives to promote and support the economic empowerment of women

I






















11

ACKNOWLEDGEMENTS










111

TABLE OF CONTENTS

ABSTRACT j




LIST OF TABLES ix


11 INTRODUCTION 1







142 Geographical 7













IV


ENVIRONMENT

21 INTRODUCTION 19













25 SUMMARY 46


31 INTRODUCTION 47



331 Motivation 52



334 Venture size 56




35 SUMMARY 65


41 INTRODUCTION 67



v




















455 Role models 88









51 INTRODUCTION 101




VI









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








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38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










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1 2 3 4 laquo 6 7





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(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




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DEMOGRAPHIC ASPECTS







8






ventures


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2 3 4 5 6 7




2 3 4 5 6 7


9

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Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12






















11

ACKNOWLEDGEMENTS










111

TABLE OF CONTENTS

ABSTRACT j




LIST OF TABLES ix


11 INTRODUCTION 1







142 Geographical 7













IV


ENVIRONMENT

21 INTRODUCTION 19













25 SUMMARY 46


31 INTRODUCTION 47



331 Motivation 52



334 Venture size 56




35 SUMMARY 65


41 INTRODUCTION 67



v




















455 Role models 88









51 INTRODUCTION 101




VI









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12

ACKNOWLEDGEMENTS










111

TABLE OF CONTENTS

ABSTRACT j




LIST OF TABLES ix


11 INTRODUCTION 1







142 Geographical 7













IV


ENVIRONMENT

21 INTRODUCTION 19













25 SUMMARY 46


31 INTRODUCTION 47



331 Motivation 52



334 Venture size 56




35 SUMMARY 65


41 INTRODUCTION 67



v




















455 Role models 88









51 INTRODUCTION 101




VI









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12

TABLE OF CONTENTS

ABSTRACT j




LIST OF TABLES ix


11 INTRODUCTION 1







142 Geographical 7













IV


ENVIRONMENT

21 INTRODUCTION 19













25 SUMMARY 46


31 INTRODUCTION 47



331 Motivation 52



334 Venture size 56




35 SUMMARY 65


41 INTRODUCTION 67



v




















455 Role models 88









51 INTRODUCTION 101




VI









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12


ENVIRONMENT

21 INTRODUCTION 19













25 SUMMARY 46


31 INTRODUCTION 47



331 Motivation 52



334 Venture size 56




35 SUMMARY 65


41 INTRODUCTION 67



v




















455 Role models 88









51 INTRODUCTION 101




VI









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12




















455 Role models 88









51 INTRODUCTION 101




VI









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12









56 SUMMARY 115

BIBLIOGRAPHY 117


vu

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12

LIST OF FIGURES







Ekurhuleni

LIST OF TABLES
































IX


x


11 INTRODUCTION







1





























2


Herrington 2006 24)












country















operate

3




define above












4




















recommendations







5














business ventures



Ekurhuleni district

6




142 Geographical




7














8




this study


bull Text books













152 Empirical study



1999 3)

9








measures






10



1522 Sampling frame









11










12












questionnaire









13





















of statements




prior to study

14





1527 Data analysis






15


paradox














developed


16



RESEARCH PROPOSAL

TMPERICAL STUDY

X HPR(

X t

TER2and3)

DATA COLLECTION

SAMPLING DESIGN

vfhL V


Source Botha (2006)




17








18



21 INTRODUCTION




19











improved greatly















20










April - June 2008

Thousands


Labour force 17 844

Employed 13 729



Agriculture 790


Unemployed 4114








21








slightly


















22










surveys

















23






24














25














scale













26










employment



development



27












2001 2002 2003 2004 2005 2006 TEA 43 62 41 51 50 50





28

















operate



29


























30











31





Category of SMME

Description




Micro enterprises








Medium enterprise





32












basic needs





33


















34
























35








bull Marketing





36














37








r-4 gt J i

^ Hampton Park

J i

j Northern Ragioi



I Bedrordview

bull


Boksburg m Bnkpan 1

i Springs



(f Nigallaquo

^

(f Nigallaquo


38

I




Population 2534180 8845741 46710858



No of households 787040 2731869 12144712













76 378 100


48074 236846 619790


78 382 100


24 37 25


39







40






2007 4)










41



















42




2

Transformed (urban)

27


15 Transformed

(forestry) 1


5

Natural 43

Degraded 001


2







part of EMM


43

I



















(EMM 2007 7)








(EMM 2007 7)


25 SUMMARY
















31 INTRODUCTION














47














48





















49

I












Research







Area of importance





Success factors



(Verwey 2006 3)

(Botha 2006126)


Growth elements



CKyro 20011)

(Cliff 1998526)

(Kantor 20014)


51

331 Motivation






to do so


















I









































































55



334 Venture size





et al 2000540)




100)












56




















57







58







59










60


entrepreneurship









entrepreneurs




61





environments






(Sannikova 20074)





bull Network

bull Promotion

62






63
























64













35 SUMMARY


65






66


41 INTRODUCTION










67





- Educational level





- Age of business



- Business premises


- Annual turnover









68







422 Data collection






69









mail


80 response rate


70








in Table 41 below



30 to 39 years old 20 2500

50 to 59 years old 14 1750


60+ years old 6 750


Total 80 10000





71










employment






Single 10 1250

Widowed 9 1125


Total 80 10000

72











Matric 16 2000

Certificate 4 500


Total 80 10000

73












74



One (1) child 14 1750




Total 80 10000













75






11-18 years old 15 1875

1-5 years old 13 1625

No children 10 1250

6-10 years old 9 1125

Missing 8 1000

Total 80 10000





and 10 years old



76











Myself 10 1250

5-10 10 1250

11-25 4 500

101-200 2 250

Missing 1 125

Total 80 10000





77








enterprise category





owned businesses



47

I




R500 000to R1 million 18 2250

R50 000toR100 000 9 1125

R5 million+ 6 750

Total 80 10000













79

I



Services 26 3250





Food industry 2 250

Total 80 10000







80











Partnership 18 2250




Total 80 10000







the question

81












Home based 16 2000


Agriculture 2 250

Total 80 10000








82

446 Age of business














83














Missing 1 125

Total 80 10000






84









Supervisor 11 1375


Unemployed 8 1000


Total 80 10000

85

















86




Missing 1 125

Total 80 10000















87




Relatives 10 1250


Sold business 4 500

Missing 2 250

Total 80 10000








455 Role models








Yes 12 1500

Total 80 10000






own employment


456 First ownership




business

89






Yes 62 7750

No 12 1500

Missing 6 750

Total 80 10000











90






Motivation n X s
















Total 4796 0906



0813 to 2405















92








Category n X s






Total 4403 0837

93









(x = 4325)















the statement

94





Obstacles n X s














Total 4874 1091



95


x =5150








96


Obstacles n X s












Total 4764 0968




6225





97

I





















98







48 SUMMARY








99



business




ownership






100


51 INTRODUCTION











101

















102








103



53 RECOMMENDATIONS






104


Own compilation



105

531 Promotion

Recommendation


Motivation


532 Strategy

Recommendation




Motivation


106





107

533 Support

bull Training

Recommendation


Motivation





108



entrepreneurs


Recommendation




Motivation





Recommendation


Motivation





109






Recommendation


110

Motivation

















i l l


Recommendation


Motivation




112












business ventures



Ekurhuleni district


113











were achieved





114


56 SUMMARY







115



116

BIBLIOGRAPHY



10(1)








303












117


Entrepreneurship




















thesis)

118








Entrepreneurship



17(3) 256-268










70(1) 156-184



119




September 2008]








542





west University







120






2008]


















121












187-206







2008]






122

















148






123












Studies Turkey Pp 3











124








Practice 27(2) 149-166








































phenomenon [Web]





44








No 47







127














377(17612)







September 2008]

128





















129






February 2008]



130



2520

Code number

APPENDIX A


EKURHULENI










Str

ongl

y di

sagr

ee

U)

0) Q S

light

ly

disa

gree

Neu

tral

view

Slig

htly

ag

ree 0)

ltD i_

lt Str

ongl

y ag

ree


1 2 3 4 laquo 6 7





l




(01) (02) (03) (04) (05) (06)


(01) (02) (03) (04)


Lower than matric

Matric

Certificate


University degree

Postgraduate degree

(01)

(02)

(03)

(04)

(05)

(06)


None

One (1) child

Two (2) children

Three (3) children

Four (4) children

Five (5) children

(01)

(02)

(03)

(04)

(05)

(06)


No children


Six (6) to 10 years

1 1 - 1 8 years

18+

(01)

(02)

(03)

(04)

(05)

2


Unemployed




Middle management




1 -3 years

4 - 5 years

6 - 1 0 years


3




Retail trade

Wholesale trade

Manufacturing

Construction



Food industry




(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)

(09)

(10)


Sole proprietorship

Partnership

Close corporation

Company (private)

Company (public)

Business Trust

Not registered


(01)

(02)

(03)

(04)

(05)

(06)

(07)

(08)


Please specify

4












Bank loan (05)










Myself 2-4 5-10 11-25 26-50 51-100 101-200 200+

(01) (02) (03) (04) (05) (06) (07) (08)

gt


Less than R30 000

R30 000 - R50 000

R50 000-R100 000

R100 000-R500 000



R5 million+

(01)

(02)

(03)

(04)

(05)

(06)

(07)


Yes (01)

No (02)



No (02)




Sold of (05)


6




Stro

ngly

di

sagr

ee 0

W Q S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree 0

a)

lt Stro

ngly

ag

ree


















Stro

ngly

di

sagr

ee

CD

O) a w a S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree CD

0) i_

lt Stro

ngly

ag

ree

DEMOGRAPHIC ASPECTS







8






ventures


Stro

ngly

di

sagr

ee

CD CD

O )

cgt

b Slig

htly

di

sagr

ee

Neu

tral

view

S

light

ly

agre

e CD CD

lt Stro

ngly

ag

ree












2 3 4 5 6 7




2 3 4 5 6 7


9

Stro

ngly

di

sagr

ee

U) m b S

light

ly

disa

gree

N

eutra

l vi

ew

Slig

htly

ag

ree (D

a)

lt Stro

ngly

ag

ree
















Yes (01)

No (02)





Accounting skills

Management skills



(04)

(05)

(06)

(07)

(08)

(09)


Yes (01)

No (02)









(04)

(05)

(06)

(07)

(08)

(09)

11


Financial support




Marketing support


Growth Support

Technical support




Legal support




12